In a report released yesterday, Robert Drbul from BTIG reiterated a Buy rating on Costco, with a price target of $1,115.00.
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Robert Drbul has given his Buy rating due to a combination of factors including Costco’s strong financial performance and growth prospects. The company reported an impressive increase in net sales and same-store sales, alongside an expansion in gross margin, which indicates efficient cost management and strong demand. Additionally, Costco’s adjusted earnings per share surpassed expectations, reflecting its ability to generate higher profitability.
Membership income also showed significant growth, with a high renewal rate in the U.S. and Canada, which underscores Costco’s strong customer loyalty. The company’s e-commerce segment experienced substantial growth, further contributing to its overall performance. Drbul also highlights the attractive valuation of Costco compared to historical averages and its peers, suggesting that the current market price presents a compelling investment opportunity. The expectation of continued revenue growth and margin expansion in the coming years supports the Buy rating and the price target of $1,115.
According to TipRanks, Drbul is a 4-star analyst with an average return of 4.8% and a 53.77% success rate. Drbul covers the Consumer Cyclical sector, focusing on stocks such as FIGS, G-III Apparel Group, and Kohl’s.
In another report released today, Morgan Stanley also reiterated a Buy rating on the stock with a $1,130.00 price target.