Costco’s Strong Performance and Strategic Initiatives Drive Buy Rating

Analyst Corey Tarlowe from Jefferies reiterated a Buy rating on Costco (COST – Research Report) and keeping the price target at $1,180.00.

Corey Tarlowe has given his Buy rating due to a combination of factors that highlight Costco’s strong performance and strategic initiatives. The company reported impressive comparable sales growth in the third quarter, with a notable increase in both traffic and ticket sales across all geographic segments. This growth is indicative of Costco’s ability to attract and retain customers effectively.
Additionally, Costco’s management has demonstrated adeptness in managing tariff exposures by rerouting goods and enhancing local production, which has helped maintain competitive pricing. The company’s expansion plans, including the opening of new warehouses, further support its growth trajectory. Moreover, Costco’s investment in technology, such as the ‘Scan-and-Go’ feature and digital membership enhancements, is expected to improve customer experience and operational efficiency, reinforcing the positive outlook for the stock.

In another report released today, Evercore ISI also maintained a Buy rating on the stock with a $1,075.00 price target.

Based on the recent corporate insider activity of 66 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.