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Costco valuation leaves ‘little room for error’, says Roth Capital

Roth Capital keeps a Neutral rating and $907 price target on Costco (COST) after its latest monthly sales data. June follows May as another month below-Q3 trends, and in particular, the U.S. has decelerated from an 8% comp to 5.5%, the analyst tells investors in a research note. While results are still the envy of most peers, the stock’s valuation leaves little room for error, or in this case, prolonged deceleration, Roth added.

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