UPDATE: Deutsche Bank Color On COST FQ2

Deutsche Bank, which raised its PT on shares of Costco Wholesale Corporation (NASDAQ: COST), is providing some color on the stock.

“FQ2 was in-line, and we were encouraged by the combination of strong comp trends and positive merchandise margin growth (even ex-Mexico), despite rising cost pressures,” Deutsche Bank writes. “Costco business is see positive momentum, and the company's cash pile continues to grow. Following FQ2 results, we are maintaining our FY11 EPS est of $3.33 (+13.4% y/y), while we are raising our FY12 EPS est to $3.80 (+14.2% y/y) from $3.79.

“There could be upside to our numbers should Costco accelerate share repurchases, or increase it membership fees, which the company does not appear eager to do at this point.”

Costco Wholesale Corporation closed Wednesday at $71.76.