Mizuho Cuts Costco Wholesale (NASDAQ:COST) Price Target to $1,065.00

Key Points

• Mizuho lowered Costco’s price target from $1,100 to $1,065 while maintaining an “outperform” rating, implying approximately 18.8% upside from the current price.
• Costco exceeded quarterly expectations, reporting $6.75 in EPS versus $6.54 expected and $95.72 billion in revenue versus $94.97 billion forecast. Comparable sales rose 9.4%, while digitally enabled comparable sales increased 19.5%.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and average target of $1,051.48, though membership-growth concerns and Costco’s elevated valuation remain key risks.

Costco Wholesale (NASDAQ:COST - Get Free Report) had its target price cut by equities researchers at Mizuho from $1,100.00 to $1,065.00 in a research note issued on Friday, Benzinga reports. The brokerage presently has an "outperform" rating on the retailer's stock. Mizuho's target price points to a potential upside of 18.80% from the stock's current price.

Other equities research analysts have also issued reports about the company. TD Cowen restated a "buy" rating and issued a $1,175.00 price objective on shares of Costco Wholesale in a research note on Wednesday, June 3rd. Freedom Broker upgraded Costco Wholesale from a "hold" rating to a "buy" rating and set a $1,030.00 target price on the stock in a research report on Tuesday, September 8th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and set a $1,091.00 target price on shares of Costco Wholesale in a research report on Friday, September 4th. HC Wainwright restated a "buy" rating on shares of Costco Wholesale in a research report on Monday, June 1st. Finally, Oppenheimer restated an "outperform" rating and issued a $1,160.00 price target on shares of Costco Wholesale in a research report on Wednesday, September 16th. Twenty-three investment 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. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $1,051.48.

Costco Wholesale Stock Performance

COST opened at $896.48 on Friday. The company's 50 day moving average is $934.32 and its 200 day moving average is $968.18. The company has a current ratio of 1.07, a quick ratio of 0.61 and a debt-to-equity ratio of 0.17. The company has a market cap of $397.57 billion, a price-to-earnings ratio of 45.09, a PEG ratio of 3.78 and a beta of 0.86. 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 earnings results on Thursday, September 24th. The retailer reported $6.75 EPS for the quarter, beating 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 during the quarter, compared to analysts' expectations of $94.97 billion. On average, equities research analysts predict that Costco Wholesale will post 20.42 EPS for the current year.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. QRG Capital Management Inc. increased its stake in Costco Wholesale by 42.0% in the 2nd quarter. QRG Capital Management Inc. now owns 117,027 shares of the retailer's stock worth $109,475,000 after buying an additional 34,608 shares in the last quarter. Envestnet Portfolio Solutions Inc. lifted its position in shares of Costco Wholesale by 49.6% in the second quarter. Envestnet Portfolio Solutions Inc. now owns 21,023 shares of the retailer's stock valued at $19,666,000 after acquiring an additional 6,969 shares in the last quarter. Envestnet Asset Management Inc. lifted its position in shares of Costco Wholesale by 68.9% in the second quarter. Envestnet Asset Management Inc. now owns 1,042,046 shares of the retailer's stock valued at $974,803,000 after acquiring an additional 424,982 shares in the last quarter. State Street Corp boosted its stake in shares of Costco Wholesale by 31.7% in the second quarter. State Street Corp now owns 23,901,594 shares of the retailer's stock worth $22,359,224,000 after acquiring an additional 5,749,362 shares during the period. Finally, Silicon Valley Capital Partners boosted its stake in shares of Costco Wholesale by 2.3% in the second quarter. Silicon Valley Capital Partners now owns 12,243 shares of the retailer's stock worth $11,419,000 after acquiring an additional 271 shares during the period. 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

Costco Wholesale Company Profile

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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