Costco, the Consumer Defensive sector company, was revisited by a Wall Street analyst yesterday. Analyst Robert Ohmes from Bank of America Securities reiterated a Buy rating on the stock and has a $1,095.00 price target.
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Robert Ohmes has given his Buy rating due to a combination of factors including Costco’s strong financial performance and strategic initiatives. The company reported fourth-quarter earnings per share that exceeded expectations, driven by increased comparable sales and robust e-commerce growth. Additionally, Costco’s gross margins improved due to supply chain efficiencies and increased penetration of its Kirkland Signature brand.
Ohmes also highlights Costco’s ability to maintain stable inflation levels and its strategic focus on high-ticket items during the holiday season. The extension of store hours and anticipated membership fee increases are expected to further boost sales. Despite a slight decline in renewal rates, membership and executive penetration continue to grow, supporting Costco’s competitive advantages and expected market share gains. These factors, along with a stable and rising EBITDA margin, underpin the Buy rating with a price objective of $1,095.
COST’s price has also changed slightly for the past six months – from $930.260 to $943.310, which is a 1.40% increase.