Costco price target lowered to $1,033 from $1,042 at Truist

Truist lowered the firm’s price target on Costco (COST) to $1,033 from $1,042 and keeps a Hold rating on the shares. The company delivered a strong quarter, including 6.4% core comp growth, and while EBIT margins were a touch below estimates due to slight SG&A deleverage, they were still slightly higher y/y, the analyst tells investors in a research note. Truist adds however that while Costco business remains strong and its extreme value proposition will lead to continued share gains, with the stock trading at a 50-times multiple on a forward-12-month basis, it’s “challenging to put fresh money to work”.