Bernstein raises Costco stock price target to $1,177

On Friday, Bernstein analysts adjusted their outlook on Costco Wholesale (NASDAQ:COST), raising the price target slightly to $1,177 from the previous target of $1,167, while reaffirming their Outperform rating on the company’s shares. The move follows Costco’s release of its second quarter 2025 financial results, which surpassed consensus revenue estimates but fell short on profit margins and membership fee income. According to InvestingPro data, analyst consensus remains bullish with a target range of $560 to $1,205, while the company’s market capitalization stands at $428 billion.

Costco’s recent performance has been marked by strong growth, distinguishing the company from its competitors. The wholesale giant’s ability to exceed top-line expectations was particularly noteworthy, with InvestingPro data showing revenue growth of 5.35% and total revenue reaching $258.8 billion in the last twelve months. The slight miss on margins and membership fee income did not deter the analysts’ positive outlook on Costco’s long-term prospects, despite the company’s relatively low gross profit margin of 12.67%.

Bernstein analysts highlighted Costco’s continued success in attracting consumers, as reflected by its comp sales growth that significantly outpaced its peers. The firm’s analysts remain optimistic about Costco’s potential for expansion, both domestically and internationally. They anticipate that Costco will maintain a steady pace in increasing its store count, ensuring a lengthy growth trajectory for the company in the coming decades. InvestingPro analysis reveals strong financial health metrics with a ’GOOD’ overall rating, supported by impressive returns on equity of 30% and invested capital of 21%.

The analysts also pointed out that any potential dip in Costco’s stock price could present a more attractive opportunity for investors to acquire shares of what they consider to be one of the highest quality companies within their coverage area. They believe that Costco’s consistent performance and expansion strategy position it well for sustained growth over an extended period.

In conclusion, Bernstein’s revised price target reflects their belief in Costco’s strong consumer appeal and their expectation for the company’s continued expansion and growth. The analysts maintain that Costco’s solid track record and future prospects make it a compelling investment for those looking to add a high-quality stock to their portfolio.

In other recent news, Costco Wholesale’s financial performance and strategic initiatives have drawn attention from several analyst firms. UBS maintained a Buy rating with a price target of $1,205, noting Costco’s impressive 8.6% increase in U.S. comparable sales for February, despite challenging weather conditions. TD Cowen also expressed confidence in Costco by raising its price target to $1,100, following the company’s second-quarter earnings report, which included earnings per share of $4.02 and a 9.1% growth in comparable sales, excluding gas. Stifel reiterated a Buy rating with a $1,075 target, highlighting Costco’s 8.3% increase in adjusted comparable sales for February and a 7% growth in membership fee income.

Meanwhile, Truist Securities raised its price target to $995 from $935, maintaining a Hold rating due to concerns about the stock’s valuation, which is trading at about 55 times this year’s earnings. DA Davidson kept a Neutral rating with a $1,000 price target, acknowledging the expansion efforts of Costco and its competitors in the warehouse club segment. Analysts have pointed out Costco’s ability to capture market share and maintain strong sales trends, despite economic pressures. These recent developments underscore the varied analyst perspectives on Costco’s stock, with some emphasizing its robust sales performance and others voicing caution over its valuation.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.