Costco Stock Slips After Earnings. It Could Be an Opportunity.

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Retailer Costco delivered an earnings beat, but investors seem disappointed it didn't raise membership fees. Wall Street analysts are upbeat, though.

Costco Wholesale’s earnings report won rave reviews from Wall Street analysts. A falling share price suggests investors were disappointed by the lack of a membership fee increase, but that could create a buying opportunity.

Ciccarelli raised his target price on Costco stock to $619 from $597, and kept a Buy rating. The target is based on a multiple of 39 times the company’s expected earnings per share over the next 12 months. Still, investors should be able to relax and enjoy Costco’s steady performance for now, according to TD Cowen’s Oliver Chen. He raised his target price to $680 from $600 and kept an Outperform rating on the stock, citing consistent traffic and share gains in non-food categories.

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