DA Davidson Reiterates Neutral Rating on Costco Wholesale (COST) as Stock Trades at a Premium

DA Davidson analyst Michael Baker reiterated a Neutral rating and $1,000.00 price target on Costco Wholesale (NASDAQ: COST).

The analyst commented, "COST’s total comps were 6.9% in November, similar to up 6.6% in October. U.S. comps of 6.0% decelerated versus 6.6% last month. Similarly, the U.S. comps excluding the impact of changes in foreign currencies and gas prices, were up 5.8% in November versus +6.7% in October. Lastly, total comps, excluding the impact of changes in foreign currencies and gas prices, were up 6.4% versus +6.8% in October. Slower comps in the U.S. were offset by strength in other international markets, such that overall comps were mostly consistent with October...We maintain our NEUTRAL rating as we look for a better entry point since COST is trading at a premium 45x multiple versus consensus NTM estimates. We reiterate our $1,000 price target, based on 50x our calendar 2026 EPS forecast."

For an analyst ratings summary and ratings history on Costco Wholesale click here. For more ratings news on Costco Wholesale click here.

Shares of Costco Wholesale closed at $922.26 yesterday.

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