Costco's (COST) comparable sales outlook in the coming months will be favorable along with easing comparisons, UBS Securities said in a Wednesday note.

Investors expected core US comparable sales to range from 5% to 6% in January, but Costco exceeded the estimate with a core comp of 6.8%, the firm said.

UBS said the company may have modestly benefited from storms, but the initial demand was likely offset by a slowdown in purchasing activity during the storm and shortly afterward.

Non-foods comparable sales accelerated to low-double-digits from mid-single-digits last month, likely a benefit from the rising gold prices, the firm said, adding that this was likely partially offset by termination of certain gift cards.

The company's core digitally-enabled same-store-sales rose 33.1% in January, compared with 18.3% in December. This acceleration was likely from higher jewelry sales due to rising gold prices, the firm said.

Foreign exchange movement had a 1.7% positive impact on Costco's total reported comparable sales, UBS added.

UBS maintained a buy rating on Costco with a $1,205 price target.

Shares of the company rose about 1.5% in recent Thursday trading.

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