Costco: Resilient Core Performance and Traffic Tailwinds Support Buy Rating

Analyst Kate McShane of Goldman Sachs maintained a Buy rating on Costco, retaining the price target of $1,088.00.

Kate McShane has given his Buy rating due to a combination of factors including resilient core performance despite a modest miss versus March sales expectations. While comparable sales growth eased slightly from February and worldwide traffic slowed, U.S. comps excluding gas still exceeded consensus, and ticket growth accelerated, highlighting healthy underlying demand and strong basket trends.

McShane also emphasizes Costco’s ability to leverage higher gas prices to drive incremental warehouse visits, with management citing meaningful conversion from fuel pumps into in-store shoppers. Combined with steady consumer behavior consistent with the prior quarter and a continued focus on value, these dynamics support confidence in sustained traffic, solid comp growth, and an attractive long-term earnings outlook, justifying the Buy rating.

McShane covers the Consumer Cyclical sector, focusing on stocks such as Bath & Body Works, Ulta Beauty, and Five Below. According to TipRanks, McShane has an average return of 5.8% and a 58.81% success rate on recommended stocks.

In another report released today, BTIG also reiterated a Buy rating on the stock with a $1,125.00 price target.