Costco’s (COST) upbeat May sales report has led several analysts to reiterate a Buy rating on the stock. Among them, Loop Capital analyst Laura Champine has raised COST stock’s price target to $ 1,170 from $1,110, while maintaining a Buy rating. The revised outlook reflects optimism over strong international same-store sales (SSS) growth, which beat consensus estimates.
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It must be noted that apart from the Top analyst, two other analysts have rated Costco stock a Buy.
Here’s Why the Analyst Is Bullish
Champine pointed to Costco’s solid May performance, with core SSS up 6% and international SSS rising 8%, beating the expected 5% growth. Also, foreign exchange (FX) impacts were less negative than anticipated.
The analyst believes Costco’s pricing strategy also plays a role in its strength. The retailer is slow to pass on cost increases, which helps it capture market share as inflation pressures grow, particularly on tariff-impacted products.
Over time, the company adjusts prices to align with market trends, while maintaining its normal profit margins.
Champine’s FY25 EPS estimate is $17.96, slightly below the consensus of $18.09, as Costco is expected to absorb some inflation in the short term rather than passing it on to customers.
What Is the Prediction for Costco Stock?
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 $1,096.36, the average Costco stock price target implies an 8.46% upside potential.
