Bernstein is bullish on Costco due to its overlooked focus on international growth.
Analyst Zhihan Ma initiated coverage with an outperform rating on the Washington-based company.
"Despite its expensive valuation, we believe its international growth potential is underappreciated, which can support consistent earnings growth for decades to come," Ma told clients in a Monday note, in which she also called Costco the "highest quality company in our coverage."
As the consumer gets increasingly choosy , Ma said Costco is also a preferable play because of its focus on value.
Like her, the majority of analysts polled by LSEG have buy ratings on Costco.
Persons:
Bernstein, Zhihan Ma, Ma, LSEG
Organizations:
Costco
Locations:
Washington