Costco stock jumps to lead S&P 500 gainers after Deutsche Bank says buy

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Shares of Costco Wholesale Corp. COST, +4.01% rallied 3.7% in afternoon trading Thursday, enough the pace the S&P 500’s SPX, -0.30% gainers, after Deutsche Bank upgraded the membership-based warehouse retailer, as recent upbeat monthly sales data supported a bullish stance. The stock, which was on track to close at a two-month high, has soared 22.5% since closing at a 10-month low of $416.43 on May 20, while the S&P 500 SPX, -0.30% has lost 2.9% over the same time. Deutsche Bank analyst Krisztina Katai raised Costco’s rating to buy from hold, and raised the stock price target to $579 from $525. “[Costco] 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,” Katai wrote in a note to clients. “Recent monthly sales result 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.”

This article was originally published by Marketwatch.com. Read the original article here.

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