NEW YORK (TheStreet) -- Costco (COST) was initiated with an "overweight" rating and a $134 price target by analysts at Morgan Stanley (MS) on Tuesday.
The positive outlook on the company stems from healthy top of the line trends based on optimal positioning in the physical and diversified grocery landscape.
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Costco shares are up 0.4% to $115.75 in early market trading today.
TheStreet Ratings team rates COSTCO WHOLESALE CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate COSTCO WHOLESALE CORP (COST) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, increase in net income and growth in earnings per share. We feel these strengths outweigh the fact that the company shows low profit margins."