Costco Will Be A "Share Gainer" With Solid Sales And High Membership Renewal Rates: Analyst Forecasts Upside
Portfolio Pulse from Nabaparna Bhattacharya
Telsey Advisory Group analyst Joseph Feldman has reiterated an Outperform rating on Costco Wholesale Corporation (NASDAQ:COST), raising the price target from $600 to $625. Costco reported a solid November comp of 3.5%, with core merchandise comp at 4.4%. Traffic increased by 4.8% while the average ticket decreased by 1.3%. Costco is expected to continue as a share gainer with high membership renewal rates and is projected to generate solid EPS growth in FY24. The analyst has raised the 1Q24 EPS estimate to $3.36 from $3.32. COST shares are trading slightly lower at $587.35.
November 30, 2023 | 7:09 pm
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POSITIVE IMPACT
Costco's Outperform rating is maintained with a raised price target of $625, reflecting solid sales, high membership renewal rates, and expected EPS growth.
The positive outlook from the analyst, including the raised price target and expectations of continued solid sales and EPS growth, is likely to instill confidence in investors and could lead to a short-term increase in Costco's stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100