Evercore and Citi Raise Costco Targets to $1,050 and $1,000 After Q2 Beat
Evercore ISI raised its Costco price target to $1,050 from $1,025 and Citi lifted its objective to $1,000 from $990 after Q2 same-store sales and earnings beat. January net sales hit $21.33 billion (+9.3%), comparable sales rose 7.5%, online sales jumped 34% and membership income climbed 14% to $1.329 billion.
1. Analyst Upgrades
On February 10, Evercore ISI increased its Costco price target to $1,050 from $1,025 and maintained an Outperform rating. On February 20, Citi raised its target to $1,000 from $990 while retaining a Neutral stance, citing a modest beat in same-store sales and earnings for fiscal Q2.
2. Q2 Sales and Earnings Beat
Costco reported a modest beat in fiscal Q2 metrics, with same-store sales up and earnings exceeding consensus estimates. This performance underpinned both firms’ confidence in the company’s growth trajectory and long-term outlook.
3. January Sales Momentum
Net sales for January reached $21.33 billion, a 9.3% increase year-over-year. Comparable sales, excluding gas and currency effects, rose 7.5%, while online sales surged more than 34% during the holiday period.
4. Membership Expansion
Membership fee income climbed 14% to $1.329 billion in the first quarter of fiscal 2026. Paid membership count grew 5.2% to 81.4 million, and higher-tier Executive memberships increased 9.1% to 39.7 million, reinforcing the core subscription model’s contribution to revenue growth.