Analyst Steven Zaccone of Citi maintained a Hold rating on Costco, retaining the price target of $1,065.00.
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Steven Zaccone has given his Hold rating due to a combination of factors influencing Costco’s current market position. The company’s recent earnings report showed a slight beat in earnings per share, driven by stronger membership fee income growth and the positive impact of extended hours for Executive Members. However, despite these positive developments, the premium valuation of Costco’s stock leaves limited room for error, especially as the company faces tougher comparisons in the coming months.
Additionally, while Costco is expected to continue gaining market share and remains a strong performer in the retail sector, the company must navigate challenges such as consistent inflation levels and a ‘choiceful’ consumer base that is cautious in discretionary spending. The management’s plans for increased warehouse openings in 2026 and the strategic adjustments in product offerings for the holiday season reflect efforts to adapt to these market dynamics. These factors collectively contribute to the Hold rating, suggesting a balanced view of potential risks and opportunities.
In another report released on September 17, Wolfe Research also initiated coverage with a Hold rating on the stock with a $952.07 price target.
Based on the recent corporate insider activity of 66 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of COST in relation to earlier this year.