Telsey Reiterates Outperform Rating on Costco Wholesale (COST)

Telsey analyst Joseph Feldman reiterated an Outperform rating and $1,135.00 price target on Costco Wholesale (NASDAQ: COST).

The analyst comments "September 2026 Sales Preview: We forecast a strong total comp of 10.1% vs. 5.7% a year ago, including an estimated tailwind of ~50 bps from the timing shift of Labor Day. Excluding an estimated gas and FX net tailwind of ~360 bps, we anticipate a core merchandise comp of 6.5% vs. 6.0% last year—with a US comp, ex gas and FX, of 7.5% vs. 5.0% a year ago, a Canada comp, ex gas and FX, of 3.0% vs. 9.3% last year, and an Other International comp, ex FX, of 5.0% vs. 7.5% in the prior year. Net Gas and FX Tailwind: In September, gas prices increased ~35%, which should create an estimated tailwind of ~360 bps. Uncertainty related to the Iran war continues to impact gas prices. The FX trends should have a flattish impact on the total comp, based on recent currency rates. Ticket and Traffic: We expect traffic to be up 4.0% vs. 2.1% last year, as consumers continue to seek value and visit the gas stations more often due to higher gas prices. We project the average ticket to be up 6.1% vs. 3.5% last year, reflecting inflation, primarily driven by the conflict in the Middle East, and continued demand across categories. Digital Trends: We forecast digital sales growth of 10.0% vs. 26.1% last year, driven by gains in Non-Food, app enhancements, same-day delivery (e.g., Instacart, DoorDash, and Uber Eats), product expansion, and AI search initiatives. Category: We expect Food & Sundries and Fresh Food sales to remain solid, given favorable at-home consumption and the value-focused assortment. Non-Food sales should benefit from consumers shopping in select discretionary categories, such as sporting goods, jewelry, and seasonal—including back-to-school, fall, and Halloween."

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 $920.65 yesterday.

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