On Oct 01, major Wall Street analysts update their ratings for $Costco (COST.US)$, with price targets ranging from $975 to $1,050.
Jefferies analyst Corey Tarlowe maintains with a buy rating, and maintains the target price at $1,050.
Evercore analyst Greg Melich maintains with a buy rating, and maintains the target price at $985.
TD Cowen analyst Oliver Chen maintains with a buy rating, and adjusts the target price from $925 to $975.
D.A. Davidson analyst Michael Baker maintains with a hold rating.
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, showcasing stable underlying trends, advancements in e-commerce coupled with enhanced profitability, and solid trends in membership. There is an anticipation that the company's momentum will be sustained.
The notable increase in U.S. traffic by 5.6% and a gross margin improvement of 44 basis points reflect positively on Costco's emphasis on value, enhancement of product offerings, and appeal to a younger demographic. The company has also benefited from the positive effects of digital expansion and fuel operations on its gross margins, which have helped to balance out investments in administrative expenses and employee wages.
Costco has demonstrated robust underlying earnings for Q4, with gross margins and comparable sales slightly surpassing expectations, coupled with a steady 6% rise in global customer traffic. Despite above-average EPS growth projections for FY24, there is a more cautious forecast for the following years due to the company's pattern of reinvesting member fee income hikes. Nonetheless, the positive trajectory of e-commerce growth is noted, and the valuation of the stock is considered to remain appealing.
The company has reported robust fiscal Q4 results with EBIT slightly surpassing the consensus. A 6.9% comparable store sales growth, alongside a marginal year-over-year expansion in core-on-core gross margin, has led to approximately 13% growth in earnings per share, indicating the robustness of the company's business model. It is anticipated that the recent increase in membership fees will be primarily reinvested, which is expected to further support sales, comparable store sales, and traffic growth over the forthcoming 12 to 18 months. Consequently, earnings per share estimates for FY25-FY26 have been modestly increased post-report.
The firm maintains a positive outlook on Costco following a Q4 earnings report that surpassed expectations. The firm recognizes significant value in driving customer traffic to shopping clubs and notes that there has been no substantial shift in membership renewal rates even with the recent fee hike. Additionally, Costco's e-commerce platform shows robust growth, with a notable 20% rise on a core basis, particularly in segments like appliances and home furnishings, which are believed to be approaching a cyclical low point.
Here are the latest investment ratings and price targets for $Costco (COST.US)$ from 4 analysts:
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