07:45 AM EST, 03/08/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We keep our 12-month target at $770, 44.5x our FY 25 (Aug.) EPS of $17.32 (cut from $17.45; FY 24 up to $16.04 from $15.93) vs. 37x five-year average forward P/E. F2Q EPS of $3.92 (+19% Y/Y) beat by $0.31, although there were a few below-the-line benefits related to the $6.7B special cash dividend (e.g., favorable tax rate; elevated interest income due to a higher cash balance). Comp sales (ex-fuel/FX) grew 5.8% Y/Y, a sequential acceleration from F1Q (+3.9%). Membership income grew 8% Y/Y. COST is seeing strength in some bigger-ticket discretionary categories (e.g., appliances, tires), a stark contrast to most other retailers, as COST is lowering prices on merchandise where commodity or freight costs have come down. Digital sales were up a solid 16%, with Costco Logistics completing 28% more deliveries Y/Y. COST is doing well internationally, even in China where there is plenty of growth runway ahead (currently just six clubs in China vs. two a year ago). Our Hold opinion reflects COST's rich valuation.