Analyst Oliver Chen of TD Cowen reiterated a Buy rating on Costco (COST – Research Report), boosting the price target to $1,100.00.
Oliver Chen has given his Buy rating due to a combination of factors including Costco’s strong supply chain capabilities, significant scale, and dedication to providing value and service. Despite a slight miss in earnings per share compared to expectations, Costco’s robust comparable sales growth, particularly in non-food and fresh categories, highlights its resilience in the face of economic volatility.
Furthermore, Costco’s strategic innovations, such as new Kirkland product introductions and enhancements in digital and mobile services, are expected to strengthen its market position. The company’s plans for expansion with new club openings and increased membership fees also contribute to its growth prospects. These elements, combined with a high but justified price-to-earnings ratio, support Oliver Chen’s confidence in Costco’s continued momentum, leading to a reiterated Buy rating with a price target of $1,100.
Chen covers the Consumer Cyclical sector, focusing on stocks such as MYT Netherlands, Costco, and The Estée Lauder Companies. According to TipRanks, Chen has an average return of 5.7% and a 51.41% success rate on recommended stocks.
In another report released on March 3, Telsey Advisory also maintained a Buy rating on the stock with a $1,100.00 price target.