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Surging Costco stock downgraded by Wells Fargo because this 'may be as good as it gets'

Tae Kim

Wells Fargo Securities lowers its rating to market perform from outperform for Costco shares, citing the retailer's high valuation. The retailer’s share price move over the past year “has left it priced for perfection and diminished the risk/reward, in our view," the firm's analyst Edward Kelly says. Costco COST shares may have peaked after the stock's strong performance this year, according to Wells Fargo Securities.