Bernstein Boosts Costco Wholesale Corporation (COST) Target, Sees Consumer Sentiment Still Soft
Costco Wholesale Corporation (NASDAQ:COST) is included among the
13 Best Roth IRA Stocks to Buy Now.
On February 9, Bernstein analyst Zhihan Ma raised the price target on Costco Wholesale Corporation (NASDAQ:COST) to $1,155 from $1,146 and maintained an Outperform rating. The firm said the fourth quarter places U.S. retail at a mixed point. Consumer sentiment remains soft, and food inflation has picked up again despite some easing in egg prices. At the same time, a shift away from growth and technology stocks has supported the retail sector so far this year. Bernstein also noted several macro factors that create uncertainty around FY26, including drug pricing, SNAP, tariff changes, tax refunds, and the possibility of a World Cup-related boost.
Earlier in the month, Costco reported its January sales figures. Total sales for the retail month increased 9.3% year over year. Comparable sales, which measure performance at locations open for more than a year, rose 7.1%. Excluding the effects of gasoline price changes and foreign exchange, comparable sales were up 6.4%.
Adjusted comparable sales growth accelerated from 6.2% in December to 6.4% in January. There is a possibility that severe winter storms in the US contributed to some of that strength. Even so, the overall trend shows that sales growth remains steady.
In its annual report, Costco defines digital sales as transactions initiated through a digital device, whether fulfilled through a warehouse or distribution center, along with sales from its Costco Travel platform. These digital channels are becoming more meaningful. In its 2025 annual report, the company disclosed that digital sales now represent 10% of total revenue.
Costco Wholesale Corporation (NASDAQ:COST) operates membership warehouses and e-commerce platforms offering nationally branded and private-label products across multiple categories. The company sources most of its merchandise directly from suppliers and distributes it either through cross-docking depots or directly to its warehouses.
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