Two analysts have reaffirmed their confidence in Costco (COST) stock following the release of mixed results for the fiscal second quarter. They raised the price targets, citing the retailer’s growth potential. Overall, the analysts are optimistic about Costco’s focus on innovation, global expansion, and value-driven services to support its growth.
Analyst Zhihan Ma: Price Target Raised to $1,177 (14.7% Upside)
Bernstein analyst Zhihan Ma reiterated a Buy rating on Costco stock, stating the company’s robust market position and long-term growth trajectory. Ma noted that Costco’s sales performance has been strong despite minor dips in margins and membership fee income.
Further, the analyst is optimistic about Costco’s limited stock keeping unit strategy, treasure hunt shopping model, and low reliance on imports. He believes these factors enhance its bargaining power and ability to adapt to tariffs changes.
Analyst Oliver Chen: Price Target Raised to $1,100 (7.2% Upside)
Similarly, Oliver Chen from TD Cowen maintained a Buy rating on COST stock, citing the company’s scale, supply chain strengths, and focus on value creation. Moreover, the Top analyst pointed to Costco’s robust Q2 comparable sales growth, especially in non-food and fresh categories, as proof of its ability to handle economic challenges.
At the same time, Chen believes that the company’s strategic moves like new product launches, digital upgrades, club expansions, and higher membership fees help bolster its growth.
Is COST a Buy, Sell, or Hold?
Turning to Wall Street, COST stock has a Moderate Buy consensus rating based on 17 Buys and eight Holds assigned in the last three months. At $1,089.17, the average Costco stock price target implies 6.09% upside potential.
