Telsey Advisory analyst Joe Feldman maintains $Costco (COST.US)$ with a buy rating, and adjusts the target price from $925 to $1,000.
According to TipRanks data, the analyst has a success rate of 58.6% and a total average return of 9.4% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Costco (COST.US)$'s main analysts recently are as follows:
The company has reported another robust quarter characterized by consistent underlying trends, ongoing advancements and improved profitability in e-commerce, along with strong membership dynamics. The expectation is that the company's momentum will persist, although the current stock valuation appears to already account for this anticipation.
Costco's underlying performance in Q4 was solid, with gross margins and comparable sales slightly surpassing forecasts, coupled with a robust 6% rise in global customer traffic. Even though projections for FY24 EPS growth are above average, a more prudent view is adopted for future EPS growth, considering the company's pattern of reinvesting increases in member fee income. Nonetheless, the momentum in e-commerce growth is seen favorably, and the company's stock valuation continues to be perceived as appealing.
After Costco reported favorable fiscal Q4 results with EBIT marginally surpassing consensus, an analyst noted the company's 6.9% comparable growth and the core-on-core gross margin expansion of 9 basis points year-over-year, which translated into roughly 13% EPS growth, as evidence of the company's robust business model. The analyst also anticipates that the recently implemented membership fee increase will be predominantly reinvested back into the company, which is expected to contribute to further sales, comparable growth, and traffic over the subsequent 12-18 months. Consequently, the analyst has slightly raised the EPS forecasts for FY25-FY26 after the earnings report.
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