Roth Capital downgraded Costco (COST) to Sell from Neutral with a price target of $769, down from $906. The company reported a Q1 earnings beat but its underlying metrics are “concerning,” the analyst tells investors in a research note. The firm says Costco’s renewal rates are fading, paid members have slowed, and its year-over-year comp traffic is decelerating. Roth also believes the company’s competition is intensifying as Walmart’s (WMT) Sam’s Club and BJ’s Wholesale (BJ) dramatically increase investments.
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