12:07 PM EDT, 05/22/2024 (MT Newswires) -- Costco Wholesale's ( COST ) fiscal Q3 earnings are expected to be mostly in line with market projections, Oppenheimer said Wednesday in a note Wednesday ahead of the May 30 release of results.

Oppenheimer expects earnings per share of $3.67, mainly in line with a Wall Street forecast of $3.71 with limited upside potential on the Q3 print.

"There is always some modeling risk as we look at individual reports, as it is difficult to precisely model gross margin

movements quarterly," Oppenheimer said. "The club channel remains a clear bright spot in a more difficult retailing backdrop lately."

With Costco shares historically trading mixed on earnings prints, "we would continue to take advantage of any

profit-taking should it materialize," the report said.

"We look very favorably" at the company's long-term prospects, Oppenheimer said.

Costco "remains well-positioned to continue gaining material market share driven by the company's superior value proposition and leading merchandising capabilities," the report said. "We are optimistic management can unlock even more shareholder value over time through driving alternative revenue streams."

Oppenheimer boosted its price target on Costco stock to $850 from $805 and maintained the outperform rating.

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