Costco Wholesale Corporation (NASDAQ:COST) is included among the 10 Best Long Term Low Risk Stocks to Buy According to Hedge Funds.
Niloo / On May 19, Oppenheimer analyst Rupesh Parikh raised the firm’s price target on Costco Wholesale Corporation (NASDAQ:COST) to $1,160 from $1,100 and maintained an Outperform rating ahead of quarterly results
The firm said it continues to rank Costco as a top pick and raised its valuation target despite some near-term concerns. Oppenheimer noted that temporary margin pressure tied to fuel could lead to a modest EPS shortfall in the upcoming quarter. Even with the stock no longer trading at a discount, the firm still sees room for strong outperformance.
Oppenheimer believes Costco’s defensive business model and strong value offering across both omni-channel retail and fuel should continue helping the company gain market share at an outsized pace. The firm also said there is still potential for a special dividend and/or a stock split, both of which could act as positive catalysts for the shares. On May 12, Bernstein raised its price target on Costco to $1,192 from $1,170 and kept an Outperform rating on the stock.