'Amazon Fears' Are Plaguing Costco

'Amazon Fears' Are Plaguing Costco, BMO's Retail Analyst Says In Downgrade Note

Analysts at BMO Capital Markets' bullish stance on Costco Wholesale Corporation COST 0.74% no longer applies due to Amazon.com, Inc. AMZN 1.8%'s grocery ambitions.

BMO's Kelly Bania downgrades Costco's stock rating from Outperform to Market Perform with a price target lowered from $185 to $160 as "Amazon fears" will overshadow the wholesaler's "strong fundamentals." In fact, this was most evident after the wholesaler reported its June metrics. Despite reporting an "impressive" sales metrics for the month of June, investors pushed Costco's stock lower by 2.5 percent in the past two days.