Why Costco (COST) Stock Rose Today

NEW YORK (TheStreet) -- Costco Wholesale (COST) shares closed trading up 0.95% to $116.31 on Tuesday after having coverage initiated with an "overweight" rating by analysts at Morgan Stanley (MS).

The firm set a price target of $134 on the company's shares citing healthy top of the line trends as a reason for the optimistic outlook.

Analysts also see the big box retailer's membership model as a buffer to the losses suffered by other retailers due to online competition.

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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."

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