Analyst report 2017-2018 student managed fund

Extra benefits on selected costco services including auto and home insurance ... position as a differentiated low-cost provider and. 19 pages
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Analyst Report2017-2018 Student Managed FundMark Kugler and Alec Pisanelli16 April 20181Recommendation Overview 3Costco Corporation Overview 4Business Description 4Corporate Strategy 5Industry Analysis 6Trends & Drivers 6Competitive Analysis 6Competitive Advantages 7Investment Thesis 7Resilient Brick-and-Mortar Store Sales 7Surging E-Commerce Growth 8Commitment to Store Expansions 8Financials 9Revenues 9Working Capital 9Valuation 10DCF Valuation 10Multiples Valuation 11Risks to Thesis 11Concentration Risk 11Cannibalization Risk 11Pricing Risk 12Membership Deterioration Risk 12CSR Considerations 12Conclusion 13Appendix 142Table of ContentsBasis for RecommendationWe recommend a BUY rating for COST because of its industry position and operationalexcellence. Costco’s unique value proposition (low-cost, “treasure hunt” experience), strongcustomer retention (90% historically), and established market share (17.5% w/in Wholesalers)make them an industry stand-out. Our recommendation relies on t...