On Sep 28, major Wall Street analysts update their ratings for $Costco (COST.US)$, with price targets ranging from $925 to $1,005.
Morgan Stanley analyst Simeon Gutman maintains with a buy rating, and maintains the target price at $950.
BofA Securities analyst Robert Ohmes maintains with a buy rating, and adjusts the target price from $962 to $972.
Loop Capital analyst Laura Champine maintains with a buy rating, and adjusts the target price from $975 to $1,005.
Oppenheimer analyst Rupesh Parikh maintains with a buy rating, and maintains the target price at $955.
Stifel analyst Mark Astrachan maintains with a buy rating, and adjusts the target price from $915 to $925.
Furthermore, according to the comprehensive report, the opinions of $Costco (COST.US)$'s main analysts recently are as follows:
Costco has reported another robust quarter, maintaining steady underlying trends and demonstrating continued progress in e-commerce, which includes improved profitability, alongside robust membership trends. It is anticipated that Costco's momentum will persist, although it is recognized that the current stock valuation already reflects this anticipation.
Costco's recent quarterly earnings showcased robust underlying performance, with gross margins and comparable sales slightly surpassing expectations, complemented by a consistent 6% rise in global customer traffic. Despite forecasting EPS growth for FY24 that is somewhat above the norm, a more cautious projection is in place for the subsequent years, taking into account the company's pattern of reinvesting increases in member fee income. Nonetheless, the positive trajectory in e-commerce expansion is a point of optimism, and the stock's valuation continues to appeal.
In light of the company's fiscal Q4 outcomes, which included EBIT that slightly surpassed consensus expectations, as well as a 6.9% comp growth complemented by a year-over-year core-on-core gross margin expansion of 9 basis points resulting in approximately 13% EPS growth, the robustness of the company's business model is evident. It is anticipated that the revenue generated from the recent hike in membership fees will be principally reinvested, which is expected to contribute to sales, comp, and traffic growth over the forthcoming 12-18 months, prompting a modest increase in EPS forecasts for FY25-FY26 after the report.
The assessment of Costco's Q4 earnings, which surpassed expectations, reflects the analyst's recognition of significant value attracting customers to shopping clubs. This appeal seems unaffected by the recent membership fee rise, as the renewal rate remains stable. Additionally, Costco's e-commerce platform is showing robust growth, marked by a 20% core increase, with categories such as appliances and home furnishings contributing significantly, which are believed to be nearing a cyclical low point.
Costco's robust Q4 performance, though slightly below the heightened expectations fueled by strong fuel margins, displayed solid underlying results. The company remains effective in gaining market share and managing its margins.
Here are the latest investment ratings and price targets for $Costco (COST.US)$ from 7 analysts:
Note:
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