Bank of America Securities analyst Robert Ohmes maintained a Buy rating on Costco (COST – Research Report) yesterday and set a price target of $1,095.00.
Robert Ohmes has given his Buy rating due to a combination of factors that highlight Costco’s strong market position and growth potential. The company’s comparable sales in March showed significant improvement, with a 7.2% increase in the US when adjusted for the Easter timing shift. This growth is supported by robust traffic and ticket performance, despite headwinds from foreign exchange and gas price deflation.
Costco’s core merchandise categories, particularly Fresh Foods and Non-foods, demonstrated impressive growth, with Fresh Foods increasing by low double digits. Additionally, the e-commerce segment remains strong, with a 17.5% year-over-year increase in March. Ohmes also notes Costco’s competitive advantages, such as its value proposition in the face of rising grocery prices and its global sourcing model, which positions the company well for future share gains. These factors contribute to the maintained price objective of $1,095.
In another report released yesterday, Stifel Nicolaus also maintained a Buy rating on the stock with a $1,035.00 price target.
COST’s price has also changed slightly for the past six months – from $893.630 to $964.310, which is a 7.91% increase.