Costco, the Consumer Defensive sector company, was revisited by a Wall Street analyst on December 5. Analyst Michael Lasser from UBS maintained a Buy rating on the stock and has a $1,205.00 price target.
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Michael Lasser’s rating is based on Costco’s consistent sales growth and market share expansion, which indicate a strong and healthy business. Despite some concerns about retention rates and slightly slowing sales, Lasser views these as short-term issues that do not overshadow the company’s positive performance. Costco’s ability to generate over 6% comparable sales growth, largely driven by increased traffic, suggests that its market position remains robust and is likely to continue through the holiday season and beyond.
Additionally, Costco’s profitability has been impressive, with operating margin expansion for nine consecutive quarters, reaching historical highs. This performance is supported by a growing sales base and various strategic levers. In the first quarter, Costco’s fundamentals remained strong, with improvements in supply chain efficiency and cost management, particularly in labor expenses. Although membership renewal rates may face pressure, Lasser believes the market is well-prepared for this, reinforcing his Buy rating.
In another report released today, TR | OpenAI – 4o also upgraded the stock to a Buy with a $989.00 price target.
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.