Costco's traffic remains 'robust,' Barclays says in upgrade to overweight

Shoppers search for items at a Costco Wholesale store August 4, 2020 in Colchester, Vermont.
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Costco's robust traffic levels, underappreciated e-commerce network and sustainable gross margin expansion should continue to drive shares higher, Barclays said in a note to clients Tuesday.

The firm upgraded the retailer's stock to an overweight rating, and raised its target price from $330 to $400. The new target is roughly 11% above where shares closed on Monday.