Citi Pleased with COST Fundamentals and raise PT

According to a recent report, Citi is happy with the core fundamentals of Costco Wholesale (NASDAQ: COST) despite low F3Q11 EPS results. Citi is reiterating the Hold rating and increasing the price target from $75.00 to $82.00.

In the report, Citi said, "Although a LIFO charge in F3Q11 hit COST's EPS results, we remain pleased with the company's core fundamentals (particularly SSS and expense leverage) and believe that the company is well-positioned to capture market share, in the current high gas price environment."

Costco closed yesterday at $80.32.