Analyst Christopher Horvers of J.P. Morgan maintained a Buy rating on Costco, reducing the price target to $1,000.00.
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Christopher Horvers has given his Buy rating due to a combination of factors tied to Costco’s strong operating momentum and favorable setup for future growth. He highlights that U.S. comparable sales meaningfully exceeded market expectations, with both traffic and average ticket improving and multi‑year sales trends accelerating, even as the company faced tough prior-year comparisons. He also points out that Costco appears to have outperformed peers during the holiday season, with easing comparisons ahead and an anticipated benefit from potential tax-related consumer stimulus later in the spring. In addition, expanding Executive member penetration, faster Executive member sign-ups, and solid membership-fee income growth reinforce the strength and durability of Costco’s recurring revenue model.
Horvers further underscores that Costco’s predominantly staples-oriented assortment, strong share gains, and resilient traffic trends support the case for a premium valuation multiple. He notes that Costco has substantial runway for global warehouse expansion and that more profitable e-commerce operations and growing advertising revenues could provide incremental margin upside. Based on these drivers, he believes earnings can continue to grow at an attractive pace, justifying multiple expansion from current levels. His December 2026 price target of $1,000, grounded in a P/E at the high end of Costco’s historical range and in line with its typical premium versus the broader market, supports his Overweight (Buy) recommendation.
Based on the recent corporate insider activity of 61 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of COST in relation to earlier this year.