Costco’s momentum may cool as tailwinds cycle, says Wells Fargo

Costco’s (COST) comparable sales have been exceptionally strong, but the pace may start to moderate as major tailwinds from the past year begin to cycle, Wells Fargo analyst Edward Kelly tells investors in a research note. Gold and gift card sales alone may have contributed over 100 basis points to U.S. comps, though several other factors are also at play, the firm says. Wells has an Equal Weight rating and $1,000 price target on Costco shares.