COST stock is getting the love from analysts on December 10, 2021, a day after the company reported EPS and revenue beats.
Costco price target raised to $560 from $550 at BMO Capital
BMO Capital analyst Kelly Bania raised the firm’s price target on Costco to $560 from $550 and keeps an Outperform rating on the shares. The company’s Q1 earnings were a “strong” start to the year on upside from membership fee income and “solid” SG&A leverage, the analyst tells investors in a research note. Given the continued strength in key membership statistics, which have accelerated significantly relative to pre-Covid trends, Costco remains “well positioned” into 2022 and beyond, Bania adds.
Costco top-line strength remains impressive, says Baird
Baird analyst Peter Benedict said Costco’s Q1 results exceeded his estimates but more importantly its membership base has never been stronger with record renewal rates and robust MFI growth. He said the company is effectively navigating global supply chain challenges as in-stocks are healthy as the holiday season nears its peak, and is pragmatically passing through prices. Benedict reiterated his Outperform rating and $550 price target on Costco shares.
Costco price target raised to $560 from $510 at Morgan Stanley
Morgan Stanley analyst Simeon Gutman raised the firm’s price target on Costco to $560 from $510 and keeps an Overweight rating on the shares after what he calls “another strong quarter” in fiscal Q1 that featured a 14% EPS beat despite a tough comparison. Gutman, who is raising his estimates by about 7%-9%, remains bullish even while acknowledging that “the stock sits at an all-time high share price and valuation,” noting that core on core gross margin comparisons get easier after fiscal Q2 and that member renewal rates continue to set record highs. The analyst adds that he “sensed an unexpectedly bullish tone from CFO Richard Galanti regarding a potentially higher structural margin profile” at Costco.
Costco price target raised to $600 from $550 at Wells Fargo
Wells Fargo analyst Edward Kelly raised the firm’s price target on Costco to $600 from $550 and keeps an Overweight rating on the shares. Costco delivered another impressive quarter, as the company complemented impressive sales with strong mitigation of the challenging retail cost backdrop, Kelly tells investors in a research note.
Costco price target raised to $482 from $472 at Deutsche Bank
Deutsche Bank analyst Krisztina Katai raised the firm’s price target on Costco to $482 from $472 and keeps a Hold rating on the shares following the “strong” Q1 results.
Costco price target raised to $600 from $590 at UBS
UBS analyst Michael Lasser raised the firm’s price target on Costco to $600 from $590 and keeps a Buy rating on the shares. The company’s Q1 results were “solid”, showing “plenty of strength” on its core membership metrics on top of the already known sales growth, the analyst tells investors in a research note. Lasser adds that Costco’s renewal rates reached all time highs, while its Executive Membership penetration growth was the strongest since Q4 of 2010.
Costco Reports Beats
On December 9, 2021, Costco reported Q1 EPS of $2.98 versus the consensus estimate of $2.63. The company reported Q1 revenue of $50.36B versus the consensus estimate of $49.56B. This year included a tax benefit of $91M, 21c per diluted share, related to stock-based compensation, and a write-off of certain information technology assets of $118M pre-tax, 20c per diluted share. Reports Q1 comparable sales up 15%. Reports e-commerce sales up 14.3%.
COST Stock Technical Analysis
Both the short term and long term trends are positive. This is a very positive sign. The rising large players volume looks excellent. COST is part of the Food & Staples Retailing industry. There are 48 other stocks in this industry. COST outperforms 81% of them. COST is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market. There is a support zone ranging from 448.32 to 449.31. This zone is formed by a combination of multiple trend lines in multiple time frames. Although COST has an excellent technical rating, it does not offer a high quality setup at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first. Click here to sign up for email alerts on when COST stock is a good entry.