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Costco's May sales rise 8.1%, analysts maintain buy rating

June 6, 2024 4:35 AM

Investing.com - Costco Wholesale Corp (NASDAQ: COST) reported an increase of 6.5% in same store sales (excluding gas and foreign exchange impacts) for May. This figure exceeded the consensus estimate of 6.0% and showed acceleration from the 5.5% growth reported in April.


A significant rise in net sales was also reported, reaching $19.64 billion, an 8.1% increase compared to the $18.16 billion reported in the same period last year.


Analysts from Goldman Sachs (NYSE: GS) have maintained their 'Buy' rating, setting a 12-month price target of $851.


Stifel analysts set a price target of $850, attributing this premium valuation to Costco's annuity-like membership income and above-peer comparable growth.


However, they also noted potential risks, including competition from Amazon.com Inc (NASDAQ: AMZN) and other e-commerce retailers, slowing macroeconomic trends, rising competition in the warehouse club space, lower renewal rates and foreign exchange pressures.

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