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Buy Costco shares because it’s in the ‘early stages’ of an online sales surge, BMO says

December 18, 2017

Via: CNBC

Costco shares tumbled over the summer on worries the Amazon and Whole Foods Market merger will hurt the retailer’s business.

But one Wall Street firm says the retailer’s e-commerce growth will be a catalyst to lift the stock to new heights.

BMO Capital Markets raised its rating for Costco shares to outperform from market perform, citing the company’s surging online sales growth.

“We believe an acceleration in Costco’s online business is in early stages and could continue to support a strong comp outlook and higher valuation as the company widens its competitive moat,” analyst Kelly Bania wrote in a note to clients Monday.

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