William Blair analyst Phillip Blee has maintained their bullish stance on COST stock, giving a Buy rating on September 24.
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Phillip Blee’s rating is based on Costco’s strong performance in its fiscal fourth quarter, which met expectations and demonstrated the company’s resilience. The comparable sales, excluding gas and foreign exchange, increased by 6.4%, aligning with prior forecasts and indicating steady consumer demand despite economic challenges.
Additionally, the growth in membership revenue was a significant positive factor, highlighting Costco’s ability to maintain customer loyalty and generate consistent revenue streams. The company’s EBIT margin and earnings per share also met or slightly exceeded market expectations, reinforcing confidence in Costco’s financial health and operational efficiency. These factors collectively support the Buy rating, as they suggest Costco is well-positioned for continued success, particularly as it heads into the crucial holiday season.
Blee covers the Consumer Cyclical sector, focusing on stocks such as Somnigroup International, Advance Auto Parts, and Floor & Decor Holdings. According to TipRanks, Blee has an average return of 18.5% and a 66.67% success rate on recommended stocks.
In another report released on September 24, Bernstein also assigned a Buy rating to the stock with a $1,137.00 price target.