Strong Sales and E-commerce Growth Reinforce Buy Rating for Costco

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

Corey Tarlowe has given his Buy rating due to a combination of factors including Costco’s robust sales performance and strong comparable sales growth. In April, Costco reported a 7.0% increase in net sales year-over-year, with core comparable sales rising by 6.7% and e-commerce sales growing by 13.0%. These figures indicate a healthy demand across various departments, particularly in Food and Sundries and Fresh Food, which experienced high single-digit percentage growth.
Furthermore, despite facing foreign exchange headwinds, Costco’s traffic and ticket sales showed positive momentum. Traffic increased by 4.2% worldwide and 5.0% in the US, while ticket sales grew by 2.4% when excluding fuel and foreign exchange impacts. The company’s e-commerce segment also continued to perform well, contributing to the overall positive outlook. These encouraging trends have led to the reaffirmation of the Buy rating and price target for Costco’s stock.

In another report released today, Loop Capital Markets also maintained a Buy rating on the stock with a $1,115.00 price target.