Costco (NASDAQ:COST) Long-Term Quality Growth Play, Look For Better Entry Point

Costco Wholesale (NASDAQ:COST) continues to perform strongly in a tough economic environment, and should keep growing, according to UBS, which recommends waiting for a better entry point.

UBS says, "We expect the company to continue to deliver attractive sales growth (+7.3% for January). Despite upcoming tougher compares, Costco remains one of the few Staple retailers that could pass through rising inflation and keep comps >5%. While the shares have performed well, and we continue to view Costco as a high quality long-term growth play, we would look to better near term entry points to add."

UBS reiterates a "Neutral" rating on Costco Wholesale (COST), which closed Tuesday at $72.46, losing $0.16, or 0.22 percent. UBS raised their price target on Costco from $68 to $73.