Costco Wholesale (COST) PT Lowered to $1,050 at Raymond James

Raymond James analyst Bobby Griffin lowered the price target on Costco Wholesale (NASDAQ: COST) to $1,050.00 (from $1,100.00) while maintaining a Outperform rating.

The analyst comments "We reaffirm our Outperform rating but are trimming our target price to $1,050 following F4Q26 results (8/30/26 end), reflecting modestly lower multiple assumptions given moderating membership growth (still +3.8% y/y). Nonetheless, we continue to see earnings upside supported by healthy underlying comps, accelerating global unit growth (targeting ~30 net new annually in FY28 & beyond), improving Executive penetration, and continued digital and merchandise productivity gains. For the quarter, adj. EPS (excluding tariff refunds net of reinvestments) came in modestly ahead of expectations, reflecting modest SG&A leverage and better-than-expected tax and interest income (vs. our model). Equally important, consolidated comps (ex-gas/FX) remain healthy (+6.7% y/y), supported by positive traffic and broad-based merchandise strength, including mid-to-high-single-digit non-food comp growth. Overall, our thesis remains unchanged. Costco’s differentiated value proposition, loyal member base, consistent share gains across food and non-food, and ample flexibility for reinvestment and capital returns (~$20B in cash versus ~$4B in debt) support consistent earnings growth. We continue to view COST as a durable long-term compounder with multiple avenues to sustain attractive earnings growth and market share gains."

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