Stifel analyst Mark Astrachan maintains $Costco (COST.US)$ with a buy rating, and adjusts the target price from $915 to $925.
According to TipRanks data, the analyst has a success rate of 65.1% and a total average return of 14.7% 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 strong quarter, demonstrating steady underlying trends, continued advancements in e-commerce with enhanced profitability, and robust membership growth. It is anticipated that the company's momentum will persist, though the current stock valuation appears to reflect this expectation.
The company showcased robust underlying earnings for Q4, with gross margins and comparable sales figures slightly surpassing projections, coupled with a solid 6% rise in global customer traffic. Although the FY24 EPS growth is projected to be above average, a more cautious view is adopted for EPS growth in the upcoming years due to the company's pattern of reinvesting member fee income hikes. Nonetheless, the momentum in e-commerce growth is viewed positively, and the stock's valuation is still considered appealing.
Following solid fiscal Q4 results, with EBIT slightly exceeding consensus, Costco's impressive 6.9% comparable growth, coupled with a year-over-year core-on-core gross margin expansion of 9 basis points, is indicative of the robustness of the company's business model. This performance has led to an approximate 13% growth in EPS. The expectation that the recent increase in membership fees will primarily be channeled back into the business, potentially bolstering sales, comparable growth, and customer traffic over the coming 12-18 months, has resulted in a minor upward revision of EPS forecasts for FY25-FY26.
Note:
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