Costco price target lowered to $1,045 from $1,150 at Loop Capital

Loop Capital lowered the firm’s price target on Costco (COST) to $1,045 from $1,150 and keeps a Buy rating on the shares. The firm is adjusting its model and assuming that margins are negatively impacted by tariffs, even though Costco is slow to pass on cost increases, so there is risk to even its lowered estimates in the near-term, the analyst tells investors in a research note. Loop adds however that it also sees market share opportunities in an inflationary environment, noting that Costco’s “outsized value” is driving traffic to clubs, also cutting its FY25 EPS view to $18.03 from $18.70 and its FY26 view to $20.36 from $22.67.