Costco Price Targets Raised to $977 and $1,315 after Q2 Sales Jump 9.1%
On March 6, Truist raised its Costco target to $977 from $926 with a Hold rating, citing membership growth headwinds despite fiscal Q2 net sales rising 9.1% to $68.24 billion. BMO Capital lifted its target to $1,315 from $1,175 and kept an Outperform rating following the sales beat.
1. Truist Raises Price Target
On March 6, Truist lifted its Costco price target to $977 from $926 while maintaining a Hold rating, noting the stock’s tight valuation and the need for membership growth to improve for further upside.
2. BMO Capital Maintains Outperform Rating
That same day, BMO Capital increased its target to $1,315 from $1,175 and upheld an Outperform rating, citing Costco’s durable performance and recommending the stock as a core long-term holding.
3. Robust Fiscal Q2 Sales
Costco’s fiscal second-quarter net sales rose 9.1% year-over-year to $68.24 billion, and first-24-week sales climbed 8.7% to $134.22 billion, driven by strong consumer demand across its membership base.
4. Membership Growth Headwinds
Both firms emphasized that slower membership growth remains a headwind, warning that stagnant new member additions could limit multiple expansion despite top-line strength.