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Raymond James sees new highs for Costco

Published 12/05/2017, 03:34 PM
© Reuters.  Raymond James sees new highs for Costco
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  • Raymond James sees more upside for Costco (COST -1.2%) even after shares ran up 8% following the retailer's blockbuster report last week on November sales.
  • "Our F1Q18 EPS estimates goes to $1.35 from $1.32, while our FY18 EPS estimate increases to $6.49 from $6.41. We would note, our forward estimates and risk/reward analysis assumes a 34% tax rate," writes analyst Budd Bugatch.
  • Upside is also seen from an upcoming tax reform package.
  • "Every ~100 basis points reduction in the tax rate in our model, equates to ~$0.10 per share in earnings," estimates the RJ team.
  • Costo is rate at Overweight by Raymond James with an upped price target of $202.
  • Now read: Costco - Another Solid Year, But Amazon (NASDAQ:AMZN) Is Coming


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