TD Cowen analyst Oliver Chen maintains $Costco (COST.US)$ with a buy rating, and adjusts the target price from $925 to $975.
According to TipRanks data, the analyst has a success rate of 51.2% and a total average return of 4.8% 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 solid quarter, with consistent underlying trends, ongoing advancements in e-commerce along with enhanced profitability, and strong membership growth. It is anticipated that the company's momentum will persist, though the current market valuation appears to account for this outlook.
Costco's recent US traffic increase of 5.6% and a gross margin improvement of 44 basis points are notable, particularly in light of the company's dedication to value, enhancement of basket size through product innovation, and increasing appeal to a younger demographic. The company's gross margins benefited from the digital scale and gas, which helped to balance the investments made in SG&A wages.
The company showcased robust underlying fourth-quarter earnings, surpassing anticipated gross margins and comparable sales, coupled with a consistent global customer traffic growth of 6%. Though the projection for EPS growth in fiscal year 2024 is above average, a more cautious perspective is adopted for future EPS growth due to the historical pattern of reinvesting member fee income increases. Nonetheless, the momentum in e-commerce growth remains promising, and the stock's valuation is still perceived as appealing.
Note:
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