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Costco to hike member fees later this year, so buy the stock, Goldman Sachs says

Customers shop at a Costco Wholesale Corp. store in Hackensack, New Jersey.
Ron Antonelli | Bloomberg | Getty Images

Investors should buy Costco shares now before two events in the next 12 months add significantly to earnings, according to Goldman Sachs.

"Costco has high-visibility catalysts for 2017, and we expect investors to focus on them as we make our way through mid-year. These include the transition to a new credit card and a prospective member fee rate hike," Goldman Sachs' Matthew Fassler wrote in a note to clients Tuesday.

"We expect accelerating earnings momentum to drive some multiple expansion, and outperformance."