Costco’s (COST) better-than-expected Q3 results impressed analysts, leading to several price target upgrades. Despite economic uncertainty and tariff pressures, Costco’s value-driven strategy, strong membership growth, and resilient comparable sales have positioned it as a major player in the sector. Also, analysts are optimistic about its ability to sustain long-term growth.
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Analysts See More Upside for Costco
Among the optimistic analysts, Greg Melich from Evercore ISI upped his target to $1,075 (3.35% upside) from $1,070 while reiterating a Buy rating. He highlighted Costco’s strategic focus on value and efficient sourcing, which has helped it outpace rivals. Also, the five-star analyst noted that Costco maintains high customer traffic and market share despite tariff challenges.
Similarly, Bernstein analyst Zhihan Ma raised Costco’s price target to $1,153 (10.85% upside) from $1,148, while maintaining a Buy rating. Bernstein views Costco as the highest quality company in its coverage, with global warehouse expansion potential that supports its long-term growth outlook.
Further, Goldman Sachs (GS) analyst Kate McShane reiterated a Buy rating and increased the price target to $1,133 (8.92% upside) from $1,118. The analyst believes that Costco is managing tariff headwinds well, avoiding price hikes while growing its membership base. This supports its long-term growth outlook.
Finally, Morgan Stanley (MS) analyst Simeon Gutman reiterated a Buy rating and raised the price target to $1,225 (17.77% upside) from $1,150. He cited strong membership growth, continued eCommerce momentum, and better-than-expected gross margins, particularly in the fresh food segment, as key positive factors.
Is COST a Good Stock to Buy?
Turning to Wall Street, COST stock has a Moderate Buy consensus rating based on 17 Buys and seven Holds assigned in the last three months. At $1,082.73, the average Costco price target implies a 4.09% upside potential. Shares of the company have gained 13.65% so far this year.
