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 "TAG View: Costco reported strong 4QF26 results, with ongoing business momentum—reflecting gains from its sharper focus on value and trend-right assortment, leverage of digital, excellent execution, and membership growth. In 4QF26, EPS increased 15% (12.4% ex-tariff benefit and related reinvestment) to $6.75 ($6.60 ex-net tariff benefit), roughly in line with our forecast of $6.61 and beating the FactSet (FS) consensus of $6.54. Total sales of $95.7B, essentially in-line with our projection of $95.8B and ahead of FS at $95.0B, were driven by new store growth (11 net new stores in the quarter) and a headline comp of 9.4% (FS 9.0%). In 4QF26, we were encouraged to see: 1) broad-based growth across markets, as visible from the healthy core comp, ex-fuel and FX, of 6.7%, with the US core comp up 7.2%, Canada up 4.6%, and Other International up 6.2%; 2) solid membership fee income (MFI) growth of 7.3% (~6.8% ex-fee increase and FX), with a 10-bp increase in the US and Canada renewal rate to 92.3% and a 10-bp increase in the worldwide renewal rate to 89.8%; 3) strength in digital sales, up 19.5% (19.8% in CC); 4) effective management of inflation, up LSD, as higher inflation within gas and non-foods was partially offset by lower inflation in fresh and food & sundries."

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 $896.48 yesterday.

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