Costco's (COST) September Sales Seen as 'Solid', Analysts Remain Bullish

Yesterday after the market close, Costco (NASDAQ: COST) reported total comparable sales for September that came ahead of the consensus.

Costco reported comparable sales surged 8.5%, better than the expected +6.3%. In the States, comp. sales surged +8.6%, again better than the consensus of +7.3%. Total net sales for September were $21.46 billion, an increase of 10.1% from the same period last year.

Citi analyst Paul Lejuez said the results showed “another solid month” for COST.

“We continue to believe that COST is well positioned to navigate these inflationary times, but trading at ~18x F23E EBITDA we believe the risk/reward is balanced,” the analyst said and reiterated the Neutral rating on COST shares.

UBS analyst Michael Lasser added that Costco is “well positioned to capitalize on strong sales trends as we enter the busy holiday season.” The analyst rates COST at Buy with a $595 per share price target.

Stifel’s Mark Astrachan also weighed in positevely on the trading update.

“We continue to view Costco as a best-in-class retailer and a core holding for large-cap consumer investors. We maintain our Buy rating and $565 price target, 20x F2024E EBITDA.”

Costco shares are up almost 1% today.

By Senad Karaahmetovic

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