Retail company Costco got a rating upgrade from Wells Fargo analysts.
Analyst Edward Kelly raised his rating on Costco shares to 'overweight', with a price target of $370. Kelly mentioned solid membership growth and potentially "sticky" market share gains from pandemic.
The recent cooling off of shares could be a buying opportunity , according to the analyst.
This month, Costco posted fiscal second quarter earnings that increased +2% year-over-year to $2.14 per share, but fell short of the Street consensus forecast . Revenue rose +15% year-over-year to just under $44 billion. Comps climbed +13% while e-commerce sales increased +75% from the year-ago quarter.