Costco price target raised to $755 from $676 at Roth MKM

Roth MKM raised the firm’s price target on Costco to $755 from $676 but keeps a Neutral rating on the shares after its Q4 results. The company continues to perform very well, and the management is confident that the FY24 momentum will continue in FY25, though it also also noted that next year would likely be “less linear” when speaking on the outlook, the analyst tells investors in a research note. Roth MKM further points to Costco’s Q4 inventory levels rising 12% from last year, which is the largest y/y increase since 2022, adding while the company may be loading ahead of potential port disruptions, investors are increasingly sensitive to inventory changes.