Costco shares dip as brokerages cut price targets after quarterly results
COST•Costco shares fell nearly 1% premarket after J.P. Morgan and four other brokerages cut price targets. Costco reported adjusted fourth-quarter earnings of $6.60 per share, excluding a 15-cent tariff refund benefit, above estimates of $6.53.
1. Brokerages lower targets
J.P. Morgan cut its price target to $1,015 from $1,100, while noting concerns about member growth and describing Costco as a consistent share gainer with a strong long-term unit growth story. It said slower member growth reflects more U.S. infill locations and no Asian openings until fiscal 2028.
2. Quarterly results
Costco beat quarterly estimates on strong comparable sales growth. The company said inflationary pressures drove consumers to its discount gas stations and boosted demand across its warehouses. An average of 39 analysts rated the stock “buy,” and the median price target was $1,095.
