Zhihan Ma, an analyst from Bernstein, maintained the Buy rating on Costco. The associated price target remains the same with $1,137.00.
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Zhihan Ma has given his Buy rating due to a combination of factors including Costco’s strong membership model and international expansion potential. Despite the saturation in the US market, Costco has managed to capture a significant share of memberships among households with incomes over $50k, indicating a robust domestic presence.
The international market presents a promising growth opportunity, as Costco’s international warehouses have a higher membership per warehouse compared to the US and Canada. This suggests a significant potential for expansion and revenue growth outside of North America. Additionally, the potential for growth in retail media could offset any slowdown in US membership fee growth, supporting Costco’s overall financial performance.
According to TipRanks, Ma is a 3-star analyst with an average return of 8.4% and a 70.83% success rate. Ma covers the Consumer Defensive sector, focusing on stocks such as Target, Walmart, and Dollar General.
In another report released yesterday, Raymond James also reiterated a Buy rating on the stock with a $1,070.00 price target.