Costco upgraded to “Buy” at Deutsche Bank on consistent earnings, consumer trade-down
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Costco Wholesale Corporation (NASDAQ:COST) is a prudent pick for investors preparing for a recession, according to Deutsche Bank.
In a note to clients on Thursday, the bankâs analysts upgraded the stock from âHoldâ to âBuyâ and assigned a new price target at $579. The new price target suggests about 15% upside from Wednesdayâs closing price.
âCOST is one of the most consistent operators in our group, and its steady traffic gains and high membership renewal rates serve as key differentiators in an increasingly uncertain backdrop,â the upgrade explained. âRecent monthly sales results point to consumer "trade in" to the club channel and the company's fast inventory turns should help insulate it somewhat from inventory challenges currently faced by other retailers.â
Shares of Costco (COST) rose 0.77% in premarket trading on light volume.
Read more on recent sales results at the wholesale retailer.