Wells Fargo: Costco Wholesale Corporation (COST) Will Have Speicla Gift For Investors

NASDAQ: COST | Costco Wholesale Corporation News, Ratings, and Charts

COST – The firm has upgraded the warehouse giant and predicts a special dividend is coming to shareholders sooner rather than later.

Things are looking up for Costco Wholesale Corporation (NASDAQ:COST), and the company is going to reward shareholders as a result. That’s the assessment of Wells Fargo, which has just upgraded the warehouse giant while increasing its price target. 

CNBC passes along the firm’s take on Costco.

Costco shares will thrive this year due to larger than expected capital return to shareholders, according to one Wall Street firm.

Wells Fargo raised its rating for Costco shares to outperform from market perform, citing the company’s financial benefits from tax reform.

Analyst Edward Kelly has boosted his price target for Costco to $220 from $195, as he expects “the company to sustain strong comp momentum.” He’s also offered up a prediction that the company will be awarding shareholders in the near future with a special dividend.

“While the most recent dividend was paid in May of last year, we believe there is potential for the company to accelerate this timeline given our estimate of a 14% FCF [free cash flow] benefit from tax reform and the company’s strong underlying cash flow,” Kelly wrote.

Costco Wholesale Corporation shares rose $2.59 (+1.37%) in premarket trading Monday. Year-to-date, COST has gained 3.17%, versus a 0.52% rise in the benchmark S&P 500 index during the same period.

COST currently has a StockNews.com POWR Rating of A (Strong Buy), and is ranked #1 of 18 stocks in the Grocery/Big Box Retailers category.

COST at a Glance

COST Current POWR Rating™
Overall POWR Rating™
COST Current Price $233.60 0.10%
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COST Price Reaction

The day of this event (Apr. 16, 2018)
COST Closing Price$192.55 3.00%
COST Volume3,058,634
4.62% from avg
Leading up to this event
COST 1-mo return1.64%
After this event
COST 1-day return3.62%
COST 3-day return3.16%
COST 5-day return2.30%

COST Price Chart

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