J.P. Morgan analyst Christopher Horvers has maintained their bullish stance on COST stock, giving a Buy rating on September 29.
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Christopher Horvers has given his Buy rating due to a combination of factors that highlight Costco’s strong performance and potential for growth. The company’s September U.S. core comparable sales exceeded expectations, showing a 5.0% increase despite previous challenges, and traffic growth was notable both in the U.S. and internationally. Additionally, Costco’s digital sales saw a significant rise, and the company managed to maintain healthy price gaps compared to competitors like Sam’s Club and BJ’s, which is crucial for competitive positioning.
Moreover, Horvers points out that Costco is well-positioned to benefit from upcoming trends, such as the extended Executive Member hours and the potential impact of the OBBB in the spring. The company’s performance in key categories like computing and appliances remains strong, and there is an expectation of continued improvement in ancillary categories. These factors, combined with the stock’s current valuation and potential for high single-digit comparable sales growth, underpin Horvers’s optimistic outlook and Buy recommendation.
In another report released on September 29, Argus Research also maintained a Buy rating on the stock with a $1,200.00 price target.
COST’s price has also changed slightly for the past six months – from $908.750 to $914.800, which is a 0.67% increase.