Costco Shares Drop 3.8% as JPMorgan Lowers Price Target to $1,100
TGT•Costco shares fell 3.8% after JPMorgan cut its 12-month price target to $1,100, citing concerns about near-term growth prospects. Investors also weighed the retailer’s June sales update, which showed modest revenue gains against more tepid same-store sales performance.
1. JPMorgan Cuts Price Target
JPMorgan reduced its 12-month price target for Costco to $1,100 per share, down from its prior level, reflecting worries over slowing traffic and margin pressures in the near term. The firm pointed to rising operating costs and a challenging macroeconomic environment as key factors driving its decision.
2. Share Reaction and Sales Update
Following the announcement, Costco shares declined approximately 3.8%, underperforming the broader market. Investors are scrutinizing the company’s June sales update, which indicated solid overall revenue growth but showed same-store sales growth lagging analysts’ expectations.
