Bank of America Securities analyst Robert Ohmes reiterated a Buy rating on Costco (COST – Research Report) yesterday and set a price target of $1,095.00.
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Robert Ohmes has given his Buy rating due to a combination of factors that highlight Costco’s robust performance and strategic positioning. The company reported impressive financial results for the second fiscal quarter, with earnings per share surpassing expectations despite foreign exchange challenges. Costco demonstrated strong comparable sales growth driven by increased traffic and higher ticket values, particularly in the Non-Foods category, which saw significant growth.
Additionally, Costco’s e-commerce segment showed remarkable expansion, and the company managed to slightly improve its gross margin. The positive membership trends, with a notable increase in member households and high renewal rates, further support the Buy rating. These factors, along with Costco’s ability to attract consumers in a high-price environment and its strategic investments in supply chain and wages, position the company well for continued growth, justifying the reiterated Buy recommendation with a price objective of $1,095.
COST’s price has also changed moderately for the past six months – from $876.680 to $1026.620, which is a 17.10% increase.