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On Friday, UBS analyst Michael Lasser affirmed a Buy rating on Costco Wholesale (NASDAQ:COST), with a steady price target of $1,205.00. The target represents potential upside from the current price of $1,046.57, though InvestingPro analysis suggests the stock is trading above its Fair Value. Lasser’s stance comes as a response to Costco’s recent financial performance, which he believes showcases the company’s resilience and potential for continued growth, supported by nine analysts recently revising their earnings estimates upward.
Costco’s consistent and robust comparable sales performance was highlighted by Lasser as a key indicator of the company’s strength. With trailing twelve-month revenue of $268.78 billion and revenue growth of 5.94%, Costco has demonstrated its market dominance. Despite facing various challenges such as LIFO charges and ongoing investments in its workforce, Costco has managed to maintain its profitability, achieving a return on equity of 32%.
Lasser emphasized the company’s ability to navigate uncertainties, including the impact of tariffs, without compromising its competitive edge in offering value. He cited these attributes as reasons why Costco is positioned to outperform in the market. According to InvestingPro, the company has maintained dividend payments for 22 consecutive years and holds more cash than debt on its balance sheet, demonstrating its financial stability. For deeper insights into Costco’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
The analyst’s commentary also pointed to Costco’s sustainable growth prospects, suggesting that the stock should be considered a fundamental asset in investors’ portfolios. According to Lasser, the company’s recent quarter serves as a testament to why Costco is set to exceed market expectations.
In summary, UBS’s analysis reflects confidence in Costco’s operational strategy and its effectiveness in sustaining growth while managing external pressures. The endorsement of a Buy rating and a $1,205.00 price target indicates UBS’s belief in Costco’s ongoing success and its appeal to the market as a reliable investment.
In other recent news, Costco Wholesale reported its third-quarter fiscal year 2025 financial results, revealing a 13% increase in earnings per share and an 8% growth in revenue. This performance was supported by a 16% rise in e-commerce sales and strong membership fee income, as noted by BMO Capital Markets. BMO maintained an Outperform rating with a price target of $1,175, highlighting Costco’s supply chain efficiency and dedicated membership base. Truist Securities also acknowledged Costco’s strong quarter, raising the price target to $1,042 while keeping a Hold rating due to valuation concerns. Barclays (LON:BARC) increased its price target to $1,000, maintaining an Equalweight rating, and noted Costco’s market share gains and productivity improvements. Loop Capital Markets adjusted its price target to $1,110, retaining a Buy rating, and highlighted Costco’s strategy of delaying cost increases to consumers. Raymond (NSE:RYMD) James reaffirmed an Outperform rating with a $1,070 price target, citing strong membership trends and consistent operational execution. These developments reflect Costco’s robust performance and strategic positioning amid various economic challenges.
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