Surging Costco stock downgraded by Wells Fargo because this 'may be as good as it gets'

Shoppers at a Costco Wholesale store in East Peoria, Illinois.

Daniel Acker | Bloomberg | Getty Images

Shoppers at a Costco Wholesale store in East Peoria, Illinois.

Costco shares may have peaked after the stock’s strong performance this year, according to Wells Fargo Securities.

The firm lowered its rating to market perform from outperform for Costco shares, citing the retailer’s high valuation.

“Costco has delivered stellar performance over the last year, as we believe robust top-line growth has driven the stock sharply higher and valuation to its 20-year peak,” analyst Edward Kelly said in a note to clients Friday. “While Costco remains one of the highest quality companies within consumer and…

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