William Blair analyst Phillip Blee has maintained their bullish stance on COST stock, giving a Buy rating today.
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Phillip Blee has given his Buy rating due to a combination of factors including Costco’s resilient business model and its ability to exceed expectations in its fiscal first quarter. The company reported a 6.4% increase in comparable sales, excluding gas and foreign exchange, which aligns with preannounced expectations and demonstrates strong performance.
Additionally, Costco showed a positive trend in sales growth throughout the quarter, with increasing comparable sales in September, October, and November. Despite challenges such as elevated compensation costs, Blee anticipates that these will subside by the fiscal third quarter, paving the way for potential sales growth above 5% and mid-teens earnings growth. These factors, along with effective execution, suggest the stock could see significant upside in the latter part of the year.
In another report released today, Morgan Stanley also reiterated a Buy rating on the stock with a $1,130.00 price target.