Costco’s Strong Performance and Growth Potential Earns a Buy Rating from Analyst Simeon Gutman

Morgan Stanley analyst Simeon Gutman reiterated a Buy rating on Costco (COST – Research Report) today and set a price target of $1,225.00.

Simeon Gutman has given his Buy rating due to a combination of factors that highlight Costco’s strong performance and growth potential. Costco has demonstrated impressive member growth and maintained momentum in comparable sales, with significant increases in both U.S. comps and eCommerce sales. The company has also achieved better-than-expected gross margins, driven by efficiency improvements, particularly in the fresh department.
Costco’s ability to leverage its scale to counteract inflationary pressures and expand its market share against competitors is another key reason for the Buy rating. The company’s business model, which focuses on consumable categories, provides a defensive advantage with limited tariff risk. Additionally, Costco’s ongoing productivity improvements and eCommerce expansion are expected to continue driving margin gains, supporting a positive long-term growth outlook.

In another report released today, Bernstein also maintained a Buy rating on the stock with a $1,153.00 price target.