William Blair analyst Phillip Blee has maintained their bullish stance on COST stock, giving a Buy rating on January 5.
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Phillip Blee has given his Buy rating due to a combination of factors tied to Costco’s recent operating performance and outlook. He points to robust December sales that came in strong despite facing very difficult comparisons, with multi-year comparable sales growth rebounding to levels last seen when the shares were at record highs. These results, in his view, reduce worries that the company’s second-quarter comparable sales might soften, and instead reinforce confidence that Costco can continue to post mid–single-digit comp growth even as it cycles last year’s unusually strong figures. Based on this improving visibility, Blee has raised his sales and earnings projections, arguing that the company is positioned to deliver upside relative to prior expectations.
Blee also believes the strong holiday performance can help reverse some recent stock weakness, as Costco shares had pulled back roughly 10% over the past half year amid concerns about valuation and sector rotation. The latest numbers, in his assessment, justify renewed investor confidence by demonstrating that the underlying business remains healthy and resilient. Additionally, he views Costco’s results as an encouraging indicator for broader consumer health, especially among higher-income customers who are key to the company’s model. Taken together, these elements support his view that the recent share price decline has created an attractive entry point, warranting a Buy rating on the stock.
According to TipRanks, Blee is a 4-star analyst with an average return of 17.8% and a 53.95% success rate. Blee covers the Consumer Cyclical sector, focusing on stocks such as Driven Brands Holdings, Yeti Holdings, and Somnigroup International.
In another report released on January 5, Bernstein also maintained a Buy rating on the stock with a $0.00 price target.