The good times may be coming to an end for shares of Costco Wholesale Corporation (NASDAQ:COST). That’s the take from Wells Fargo Securities, which has lowered its rating for the retailer.
CNBC passes along the firm’s take on Costco.
Costco shares may have peaked after the stock’s strong performance this year, according to Wells Fargo Securities.
The firm lowered its rating to market perform from outperform for Costco shares, citing the retailer’s high valuation.
Despite lowering the rating for shares, analyst Edward Kelly has reaffirmed his price target of $235. He shared additional thoughts in a note to clients.
“Costco has delivered stellar performance over the last year, as we believe robust top-line growth has driven the stock sharply higher and valuation to its 20-year peak,” he wrote. “While Costco remains one of the highest quality companies within consumer and near-term results should be positive, we can’t help but think this may be as good as it gets.”
Costco Wholesale Corporation shares fell $3.52 (-1.46%) in premarket trading Friday. Year-to-date, COST has gained 28.69%, versus a 10.05% rise in the benchmark S&P 500 index during the same period.