Costco price target raised to $1,160 from $1,100 at Oppenheimer

Oppenheimer analyst Rupesh Parikh raised the firm’s price target on Costco (COST) to $1,160 from $1,100 and keeps an Outperform rating on the shares ahead of quarterly results. The firm is reiterating its top pick ranking and lifting its price target Looking at the upcoming print, Oppenheimer sees risks of transitory margin headwinds related to fuel contributing to a modest EPS shortfall. Although valuation is now no longer discounted, the firm still sees a strong outperformance case. Oppenheimer believes defensive characteristics of the model and Costco’s superior value proposition on the omni-channel/fuel fronts should continue to drive outsized share gains. The firm still sees the potential for a special dividend and/or a stock split, which it thinks could represent positive catalysts for shares.