Update shared on04 Sep 2025
Despite continued strong comparable sales growth and solid execution, analysts cite concerns about Costco’s elevated valuation and limited upside at current prices, resulting in an unchanged consensus price target of $1073.
Analyst Commentary
- Solid U.S. comparable sales growth at 5.5% in June, maintaining strength in Food, Sundries, and Fresh Foods, with mid-single-digit gains in nonfood categories.
- Stable total company-wide comps at 6.2% vs. 6.0% the prior month, demonstrating continued sales momentum.
- Continued success in attracting value-conscious customers with Costco’s wide selection and competitive pricing.
- Bullish analysts remain impressed by Costco’s operational trends, but seek a more favorable share price entry point based on current valuation.
- Bearish analysts highlight the stock’s elevated valuation, signaling that further deceleration in comps could leave the shares vulnerable to downside risk.
What's in the News
- Costco has partnered with GrowthLoop to enhance its retail media business, aiming to improve audience targeting, personalization, and campaign efficiency through advanced data cloud marketing technology (Key Developments, 2025-08-21).
- Krispy Kreme is seeking increased distribution in big-box retailers such as Costco, aiming to address customer access issues and boost sales by expanding presence in stores like Costco, Kroger, and Walmart (New York Times, 2025-08-25).
- New product launches and expanded availability at Costco include Day Out Snacks' Brownie Batter Protein Balls in 54 northeastern stores, Laird Superfood's expansion of its superfood creamers and coffee in key regions, AWAKE Chocolate’s caffeinated variety pack in the Southeast, and Bobbie’s organic infant formula now available nationwide online (Key Developments, 2025-07-10 to 2025-08-14).
- Roth Capital maintains a Neutral rating on Costco, highlighting strong results relative to peers but cautioning that the current valuation allows little room for error amidst decelerating U.S. sales comps, which dropped from 8% to 5.5% recently (Roth Capital, 2025-07-10).
- Labor tensions persist as Teamsters Local 174 filed complaints over Costco's alleged refusal to pay contracted retroactive wage increases to fleet drivers in Washington, vowing further action if obligations are unmet (Key Developments, 2025-06-27).
Valuation Changes
Summary of Valuation Changes for Costco Wholesale
- The Consensus Analyst Price Target remained effectively unchanged, at $1073.
- The Net Profit Margin for Costco Wholesale remained effectively unchanged, at 3.17%.
- The Consensus Revenue Growth forecasts for Costco Wholesale remained effectively unchanged, at 7.0% per annum.
Disclaimer
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