BMO Capital keeps an Outperform rating and $1,175 price target after its Q1 results. The company’s earnings remained strong and consistent, supported by a continuation of balanced traffic and ticket, gross margin expansion, 20% e-commerce growth and a moderation of sequential renewal rate declines, the analyst tells investors in a research note. This key renewal rate metric may have weighed on Costco’s (COST) premium valuation in 2025, this quarter gives the firm the confidence that rates should stabilize and improve, the firm added.
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