Costco Wholesale (COST) PT Raised to $1,030 at Evercore ISI

Evercore ISI analyst Greg Melich raised the price target on Costco Wholesale (NASDAQ: COST) to $1,030.00 (from $1,020.00) while maintaining a Outperform rating.

The analyst comments "Costco’s extreme value proposition is driving solid traffic, share gain and membership growth. Strength is evident from Fresh Produce to Travel to Big & Bulky amidst another strong Costco Logistics quarter. None of it is easy, but Costco makes it look routine. The loyalty is evident in our recent Walmart+ vs Amazon Prime survey, where Costco members suggest 94% renewal intentions. Our survey found a growing willingness to belong to two or more Clubs, with 40% reporting they belong to Amazon Prime and even 31% to Sam’s Club. When it comes to growing EBIT the long term success of Costco is driven by membership and top line. So what’s the risk? F1Q doesn’t leave much to pick on, yet Sam’s Club comps have accelerated ahead of Costco while Sam’s in club tech also gets the nod, providing an area to watch for. COST’s multiple of 47.5x our C26 EPS is rich vs. history, the market, and our coverage, but its backed by Costco’s premium growth and accelerating MFI perpetuity income stream amidst a lackluster consumer backdrop. Our Base Case of $1,030 assumes COST can hold a 2.3-2.5x multiple vs. the S&P on C26 EPS."

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