Stifel analyst Mark Astrachan raised the firm’s price target on Costco to $925 from $915 and keeps a Buy rating on the shares after the company reported “solid” fiscal Q4 results with EBIT modestly ahead of consensus. 6.9% comp growth, with core-on-core gross margin expanding 9 basis points year-over-year to result in about 13% EPS growth, “demonstrate the strength in the company’s business model,” the analyst tells investors. The firm, which anticipates that the recently enacted membership fee increase will be largely reinvested, further aiding sales, comp, and traffic growth over the next 12-18 months, lifted its FY25-FY26 EPS estimates “slightly” following the report.
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