BUZZ-"Brokerage Views" Column: Member loyalty and store expansion are considered the cornerstone of Costco's growth

September 25 -

** Warehouse membership retailer Costco Wholesale (COST.O) reported quarterly results on Thursday that exceeded market expectations, thanks to strong same-store sales growth—as inflation (link) has left consumers weary, prompting them to seek cheaper fuel and value-for-money goods at its warehouse clubs.

** The median target price given by 39 brokerages covering the stock is $1,095—according to data compiled by Reuters.

Momentum Remains Strong

** Morgan Stanley (rating "Overweight", target price: $1,130) said that despite slower membership growth, COST continues to deliver steady profit growth, and the opening of new stores is expected to accelerate membership growth in fiscal year 2028.

** Jefferies ("Buy", target price: $1,130) said that the future consumer spending environment will be a key factor for Costco.

** The firm added: "With gasoline prices remaining high and household budgets under pressure, Costco appears well positioned to continue gaining market share."

** RBC Capital Markets (rating "Sector Perform", target price: $1,000) said future performance will depend on trading trends, including the impact of reinvesting tariff rebates and membership growth.

** TD Cowen (rating "Buy", target price: $1,175) said the continued momentum of same-store sales growth, along with the rising popularity of personalized services, AI-driven merchandise discovery, and delivery services, should help increase long-term customer engagement and spending.

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