Costco price target raised to $680 from $600 at DA Davidson

DA Davidson raised the firm’s price target on Costco to $680 from $600 but keeps a Neutral rating on the shares after its Q2 earnings beat. The stock has out-performed last year and has been an outperformer year to date in 2024 as well, setting a high bar that is likely contributing with the small sell-off following results, the analyst tells investors in a research note. No mention of a membership fee increase may also be seen as a negative “catalyst”, though an acceleration in “core on core” gross margin gains and strong e-commerce sales were positives for the quarter, the firm added.