Freedom Broker Has Lowered Expectations for Costco Wholesale (NASDAQ:COST) Stock Price

Key Points

• Freedom Broker lowered Costco’s price target from $1,030 to $1,010 while maintaining a “buy” rating, implying approximately 9.6% upside from the prior close.
• Analyst sentiment remains broadly positive: Costco has a consensus “Moderate Buy” rating and an average price target of $1,046.77, although several firms have recently reduced their targets or assigned neutral/hold ratings.
• Costco exceeded quarterly expectations, reporting $6.75 in EPS versus a $6.54 consensus and $95.72 billion in revenue versus $94.97 billion expected. Shares traded up 2.8% to $921.60, but the stock remains richly valued at a P/E ratio of 46.32.

Costco Wholesale (NASDAQ:COST - Get Free Report) had its price target reduced by analysts at Freedom Broker from $1,030.00 to $1,010.00 in a research report issued to clients and investors on Friday, Benzinga reports. The brokerage currently has a "buy" rating on the retailer's stock. Freedom Broker's price objective suggests a potential upside of 9.59% from the company's previous close.

Several other analysts have also recently issued reports on the company. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and issued a $1,091.00 target price on shares of Costco Wholesale in a research note on Friday, September 4th. Guggenheim reaffirmed a "neutral" rating on shares of Costco Wholesale in a research report on Monday, June 1st. Truist Financial dropped their price objective on Costco Wholesale from $1,011.00 to $955.00 and set a "hold" rating for the company in a report on Friday. Weiss Ratings lowered Costco Wholesale from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Wednesday, September 2nd. Finally, Robert W. Baird set a $1,175.00 target price on Costco Wholesale in a report on Friday. Twenty-three research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $1,046.77.

Costco Wholesale Trading Up 2.8%

NASDAQ:COST traded up $25.12 during midday trading on Friday, reaching $921.60. 3,218,419 shares of the stock traded hands, compared to its average volume of 2,191,421. The stock has a market capitalization of $408.71 billion, a P/E ratio of 46.32, a PEG ratio of 3.78 and a beta of 0.86. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.61 and a current ratio of 1.07. The company has a fifty day moving average of $934.32 and a 200 day moving average of $968.18. Costco Wholesale has a 12 month low of $844.06 and a 12 month high of $1,096.50.

Costco Wholesale (NASDAQ:COST - Get Free Report) last announced its quarterly earnings results on Thursday, September 24th. The retailer reported $6.75 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $6.54 by $0.21. Costco Wholesale had a net margin of 3.01% and a return on equity of 28.04%. The business had revenue of $95.72 billion for the quarter, compared to analyst estimates of $94.97 billion. On average, research analysts predict that Costco Wholesale will post 20.42 EPS for the current year.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the business. Graybill Wealth Management LTD. grew its stake in shares of Costco Wholesale by 0.3% during the 4th quarter. Graybill Wealth Management LTD. now owns 3,194 shares of the retailer's stock valued at $2,754,000 after acquiring an additional 10 shares during the period. Palisade Asset Management LLC raised its stake in Costco Wholesale by 1.4% during the 4th quarter. Palisade Asset Management LLC now owns 702 shares of the retailer's stock worth $605,000 after acquiring an additional 10 shares during the period. Wealth Effects LLC lifted its holdings in Costco Wholesale by 1.2% during the first quarter. Wealth Effects LLC now owns 874 shares of the retailer's stock valued at $871,000 after purchasing an additional 10 shares in the last quarter. Folger Nolan Fleming Douglas Capital Management Inc. lifted its holdings in Costco Wholesale by 1.8% during the first quarter. Folger Nolan Fleming Douglas Capital Management Inc. now owns 551 shares of the retailer's stock valued at $549,000 after purchasing an additional 10 shares in the last quarter. Finally, First National Bank of Hutchinson boosted its position in shares of Costco Wholesale by 0.9% in the first quarter. First National Bank of Hutchinson now owns 1,098 shares of the retailer's stock worth $1,094,000 after purchasing an additional 10 shares during the period. 68.48% of the stock is currently owned by institutional investors.

More Costco Wholesale News

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

• Positive Sentiment: Earnings and sales exceeded expectations. Costco reported $6.75 in adjusted EPS versus approximately $6.53–$6.54 expected, while revenue reached $95.72 billion against a $94.97 billion consensus. Net income rose 14.9% year over year to nearly $3 billion. Costco Ends Its Fiscal Year on a High Note, Eyes Big Expansion
• Positive Sentiment: Broad operating momentum supports the bullish case. Fourth-quarter comparable sales increased 9.4%, digitally enabled comparable sales jumped 19.5%, and pharmacy, gasoline and membership activity remained strong. Management also plans to accelerate expansion with 33 new warehouses in fiscal 2027. Costco Q4 Earnings Call Highlights Expansion and Digital Growth
• Positive Sentiment: Analyst support remains substantial. Goldman Sachs sees meaningful upside, while UBS reiterated a Buy rating with a $1,275 target. Bernstein, Mizuho, JPMorgan and DA Davidson also retain positive or neutral ratings with targets above the recent trading level, despite several reductions. Costco just reported strong earnings
• Neutral Sentiment: Tariff refunds boosted results. Fourth-quarter EPS included a one-time benefit of roughly $0.15 per share from IEEPA tariff refunds. Costco said it has returned part of the benefit to members, but investors may discount some of the earnings beat as nonrecurring. Costco earnings beat expectations, thanks to tariff refunds
• Negative Sentiment: Premium valuation and membership concerns are limiting enthusiasm. Costco trades at roughly 46 times earnings, while membership-fee growth has slowed sharply after the 2024 fee increase. Because membership income contributes significantly to operating profit, analysts are focused on renewal rates and the timing of the next fee increase. Costco's Best Numbers Came With an Asterisk
• Negative Sentiment: Several firms lowered price targets. Wells Fargo, Truist, JPMorgan and Raymond James reduced their targets following the report, reflecting concerns that strong execution is already priced into COST and that tariffs, higher product costs and elevated interest rates could pressure future margins.

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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