Costco Wholesale (NASDAQ:COST) Stock Price Target Lowered at Sanford C. Bernstein

Key Points

• Sanford C. Bernstein lowered Costco’s price target slightly from $1,144 to $1,143 while maintaining an “outperform” rating, implying 27.5% potential upside.
• Analyst sentiment remains broadly positive: 23 analysts rate the stock a Buy, 10 Hold, and 1 Sell, producing a consensus “Moderate Buy” rating and an average target of $1,052.61.
• Costco exceeded quarterly expectations, reporting $6.75 in EPS versus $6.54 expected and $95.72 billion in revenue versus $94.97 billion forecast; however, investors remain focused on slowing membership growth and the stock’s elevated valuation.

Costco Wholesale (NASDAQ:COST - Get Free Report) had its price target cut by analysts at Sanford C. Bernstein from $1,144.00 to $1,143.00 in a research note issued to investors on Friday, Benzinga reports. The firm presently has an "outperform" rating on the retailer's stock. Sanford C. Bernstein's target price points to a potential upside of 27.50% from the stock's current price.

A number of other analysts also recently issued reports on COST. Mizuho set a $1,100.00 price target on shares of Costco Wholesale in a report on Monday, June 1st. Royal Bank Of Canada reaffirmed a "sector perform" rating on shares of Costco Wholesale in a report on Tuesday, September 15th. BTIG Research reaffirmed a "buy" rating and issued a $1,125.00 price objective on shares of Costco Wholesale in a research note on Wednesday. The Goldman Sachs Group lifted their price objective on shares of Costco Wholesale from $1,088.00 to $1,159.00 and gave the stock a "buy" rating in a research note on Friday, May 29th. Finally, Truist Financial raised their price target on Costco Wholesale from $977.00 to $1,011.00 and gave the stock a "hold" rating in a research report on Friday, May 29th. Twenty-three analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Costco Wholesale presently has a consensus rating of "Moderate Buy" and a consensus target price of $1,052.61.

Costco Wholesale Trading Down 0.9%

Shares of Costco Wholesale stock opened at $896.48 on Friday. The company's fifty day simple moving average is $934.32 and its 200-day simple moving average is $968.18. The stock has a market capitalization of $397.57 billion, a PE ratio of 45.09, a P/E/G ratio of 3.78 and a beta of 0.86. Costco Wholesale has a 1-year low of $844.06 and a 1-year high of $1,096.50. The company has a debt-to-equity ratio of 0.17, a current ratio of 1.07 and a quick ratio of 0.61.

Costco Wholesale (NASDAQ:COST - Get Free Report) last released its earnings results on Thursday, September 24th. The retailer reported $6.75 EPS for the quarter, topping the consensus estimate of $6.54 by $0.21. Costco Wholesale had a net margin of 3.01% and a return on equity of 28.04%. The firm had revenue of $95.72 billion for the quarter, compared to the consensus estimate of $94.97 billion. As a group, equities analysts anticipate that Costco Wholesale will post 20.42 earnings per share for the current year.

Institutional Trading of Costco Wholesale

Several large investors have recently bought and sold shares of the stock. C M Bidwell & Associates Ltd. acquired a new stake in shares of Costco Wholesale during the second quarter worth about $28,000. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new position in shares of Costco Wholesale during the 4th quarter valued at about $27,000. Burk Holdings LLC acquired a new position in Costco Wholesale in the second quarter valued at approximately $30,000. Manning & Napier Advisors LLC acquired a new position in shares of Costco Wholesale in the 2nd quarter valued at $30,000. Finally, Lifetime Wealth Management P.C. purchased a new stake in shares of Costco Wholesale during the 4th quarter worth about $28,000. Hedge funds and other institutional investors own 68.48% of the company's stock.

Costco Wholesale News Summary

Here are the key news stories impacting Costco Wholesale this week:

• Positive Sentiment: Costco exceeded Wall Street expectations, reporting $6.75 in diluted EPS versus the $6.54 consensus and $95.72 billion in revenue versus the $94.97 billion estimate. Net income rose to nearly $3.0 billion from $2.61 billion a year earlier. Costco earnings beat expectations
• Positive Sentiment: Underlying retail momentum remained solid: fourth-quarter comparable sales increased 9.4%, while digitally enabled comparable sales jumped 19.5%, supported by strength across several merchandise categories. Costco digitally enabled sales growth
• Positive Sentiment: UBS reiterated its Buy rating and $1,275 price target, arguing that strong execution and resilient demand for essentials offset concerns about membership growth. BTIG also reaffirmed its Buy rating with a $1,125 target. UBS reiterates Buy rating
• Neutral Sentiment: Costco’s fourth-quarter EPS included a roughly $0.15-per-share benefit from IEEPA tariff refunds. Although management partially reinvested the benefit into member value, investors may discount the earnings beat because this boost was nonrecurring. Costco fiscal fourth-quarter results
• Negative Sentiment: Membership growth is becoming a key concern because membership fees account for a substantial portion of operating income, while the benefit from Costco’s prior fee increase is beginning to fade. Citi maintained a Hold rating and a $1,020 target, citing a balanced risk-reward profile. Citi maintains Hold rating
• Negative Sentiment: Analysts remain concerned that COST’s elevated valuation leaves little room for disappointment. A separate analysis reiterated a Sell view, suggesting that strong fundamentals are already reflected in the share price. Costco valuation analysis

About Costco Wholesale

Costco Wholesale Corporation operates membership-based warehouse clubs that offer a broad selection of merchandise at generally competitive prices. Its product range includes groceries, fresh foods, apparel, appliances, electronics, furniture, jewelry, hardware, and seasonal goods, along with private-label products sold under the Kirkland Signature brand.

The company also provides a variety of ancillary services, including gasoline stations, pharmacies, optical centers, hearing-aid centers, food courts, tire centers, and travel services.

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