Costco Wholesale reported strong fiscal fourth-quarter results, with earnings of $6.60 per share surpassing the LSEG consensus of $6.53, and revenue reaching $95.72 billion, also above estimates. Goldman Sachs analyst Kate McShane highlighted that the company is focusing on tariff refunds to support pricing strategies and is well-positioned to attract younger members and expand delivery options.
Despite a 5% decline in shares over the past year due to concerns about rising fuel costs and e-commerce competition, Goldman Sachs believes Costco's plans to open 28 new warehouses in fiscal year 2027 will enhance its market presence. The investment bank has adjusted its price target from $1,159 to $1,134, indicating a potential 26% upside from the stock's recent close.
This positive outlook is echoed by other analysts, with 25 out of 39 covering Costco maintaining a buy or strong buy rating, including firms like JPMorgan, Bank of America, and Morgan Stanley