Analysts Not-So-Bullish On Costco
Analysts at Janney Capital downgraded Costco Wholesale Corporation (NASDAQ: COST) on Friday from a Buy to a Neutral rating. According to the research firm, the company’s recent strong performance is not an indicator of how it will perform going forward, as the growth was partly driven by lower gasoline prices. As oil and the U.S. dollar appreciate, the company’s bottom line could suffer the consequences.
On Thursday, UBS reiterated its Neutral rating for Costco, as well, setting a $145 price target. While analyst Michael Lasser is relatively more bullish on the company than Janney’s specialists, he still doesn’t consider the stock a Buy.
Other analyst firms like JP Morgan and Credit Suisse seem more confident in the retailer’s future, and see some upside potential for its stock.
Below is a closer look at two other investment options in the industry.
Related Link: Fast Money Picks For December 12: Costco, Rentech Nitrogen, Spirit Airlines, NXP
Big Lots, Inc.
Analysts seem to see potential in smaller competitor Big Lots, Inc. (NYSE: BIG), a small-cap broadline closeout retailer. Last Monday, Wedbush reiterated its Outperform rating for the company and set a $50 price target.
On the other hand, JP Morgan recently downgraded the stock from Overweight to Neutral. However, its price target of $51 still leaves plenty of space for investors to make money out of this stock.
Dollar General Corp.
Famed Dollar General Corp. (NYSE: DG) is also liked by a few research firms, such as Citigroup and Credit Suisse. The former initiated coverage on the company last Wednesday with a Buy rating and an $84 price target, while the latter reiterated its Outperform recommendation, setting a price target of $76.
Dollar General traded recently at $70.04.
Latest Ratings for COST
Dec 2014 | Janney Capital | Downgrades | Buy | Neutral |
Dec 2014 | UBS | Maintains | Neutral | |
Dec 2014 | JP Morgan | Maintains | Overweight |
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