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Costco Wholesale (COST) isn’t reporting earnings until the end of the month, but that didn’t stop Raymond James from raising its price target on the retailer.

The Back Story. Costco stock is up more than 20% this year, and has risen 22.7% in the trailing 12-month period, easily topping the Dow Jones Industrial Average’s 10% rise this year. Barron’s has previously highlighted the steady-eddy nature of its outperformance, its successful strategy of focusing on value, and ability to deliver a string of strong earnings results. Even its missteps are relatively small, and insiders are buying the stock, while analysts continue to be upbeat about its prospects.

What’s New. On Wednesday, Budd Bugatch reiterated an Outperform rating on Costco and raised his price target by $10 to $260. He writes that the move comes ahead of the fiscal third-quarter earnings report, slated for after the bell on May 30, following updated foreign exchange rates, fuel prices, and the company’s strong April same-store sales update.

Costco is scheduled to reports its fiscal third-quarter earnings after the close on May 30. For the quarter, he expects Costco will report $1.90 a share, above the $1.82 consensus estimate and at the high end of the company’s guidance, and he raised his net sales forecast to $34.4 billion on a 5.1% gain in comparable sales (excluding gas and currency.

Looking Ahead. Bugatch writes that Costco continues to resonate with consumers, including plenty of millennials, even in a retail environment that’s increasingly shifting toward e-commerce. Moreover, the company’s consistent U.S. consumer traffic growth shows that management has made key strides in improving Costco’s online capabilities—without cannibalizing brick-and-mortar business.

Bugatch writes that overall, his “favorable thesis on Costco remains unchanged. We continue to believe the membership club model is arguably the most attractive business model in hardlines retail today.”

Of course, he is far from the only analyst to be bullish on Costco’s prospects, even with the year to date rally. Barron’s likes the stock, which continues to up its payout and may announce a special dividend. While there’s no such thing as a sure bet, Costco has proven remarkably adept at navigating the maelstrom of retail in recent years, providing steady performance and using e-commerce to its advantage rather than losing its lunch to online alternatives. The shares thus have long sported a premium valuation, and although that’s crept up with the stock, many see it as justified given the company’s long-term growth trajectory, fairly predictable earnings growth—thanks to a membership renewal rate that hovers around 90%—and adept management team.

Costco ended up 0.8% to $244.59 on Wednesday.

Write to Teresa Rivas at teresa.rivas@barrons.com