Analyst Zhihan Ma of Bernstein maintained a Buy rating on Costco (COST – Research Report), boosting the price target to $1,177.00.
Zhihan Ma has given his Buy rating due to a combination of factors that highlight Costco’s strong market position and growth potential. The company has consistently outperformed expectations, particularly in terms of sales, despite minor setbacks in margins and membership fee income. Costco is regarded as a high-quality company with significant opportunities for global warehouse expansion, which promises a long-term growth trajectory.
Costco’s business model, characterized by its limited SKU and treasure hunt approach, provides it with substantial bargaining power and flexibility in adapting to changes in tariffs. Additionally, the company’s relatively low exposure to imported goods further strengthens its position. Although there has been a slight reduction in the planned number of new warehouses, the expansion continues at a steady pace, supporting the company’s growth outlook. These factors, combined with a favorable valuation adjustment, underpin the Buy rating with a target price of $1,177.
According to TipRanks, Ma is a 2-star analyst with an average return of 1.1% and a 44.44% success rate. Ma covers the Consumer Cyclical sector, focusing on stocks such as Costco, Dollar Tree, and Lowe’s.
In another report released yesterday, TD Cowen also reiterated a Buy rating on the stock with a $1,100.00 price target.