Wall Street saw much to like in Costco ‘s earnings report last Thursday, as customers flocked to the warehouse club’s stores and website. Costco’s earnings per share for its fiscal third quarter came in at $3.78, topping the $3.70 expected from analysts polled by LSEG. Revenue was $58.52 billion versus the $58.07 billion consensus estimate. Its e-commerce growth was driven by electronics, gold bars and silver coins, as well as gift cards, Bank of America pointed out in a note Friday. The bank believes Costco will continue to benefit from digital enhancements and membership growth. COST 1Y mountain Costco’s one-year performance Bank of America Analyst Robert Ohmes reiterated his buy rating and increased his price target to $874 from $865, suggesting nearly 8% upside from Friday’s close. “We … expect COST (and other warehouse clubs) to gain share in the current environment as consumers continue to adjust to higher prices, making COST’s value proposition more attractive,” he said. Loop Capital also remains bullish and hiked its price target on the stock to $890 from $840, implying nearly 10% upside ahead. The firm is anticipating continued growth in revenue and same-store sales for the year. “This is driven by our observation of improved omni-channel capabilities, international expansion, and product innovation including at the wildly popular Kirkland brand,” analyst Laura Champine wrote in a note Sunday. Shares of Costco are up about 23% year to date.
Source: www.cnbc.com