Baird analyst Peter Benedict kept his Outperform rating and $270 price target on Costco ahead of its Q3 earnings, saying that the unfavorable gas margin dynamics in the quarter have put his expected EPS of $1.77 below the consensus $1.82 level. The analyst adds that while Costco's core comps may have moderated, its top line trends continue to outperform in the retail sector while its better renewal rates validate its strategy to invest for loyalty. In spite of the valuation on Costco rising above its historical trend, Benedict urges investors to continue accumulating this "growth staple" stock.