Goldman Sachs Upgrades Costco Outlook Following Strong Earnings Report
Costco Wholesale reported strong quarterly earnings and revenue that exceeded analyst expectations. The company earned $6.60 per share, surpassing the LSEG consensus of $6.53, while generating $95.72 billion in revenue. Despite a one-year decline of 5% due to concerns over fuel costs and e-commerce competition, Goldman Sachs has upgraded its outlook for Costco's stock. The firm lowered its price target from $1,159 to $1,134 but still sees approximately 26% upside potential based on the recent closing price. Goldman Sachs analyst Kate McShane highlighted Costco’s strategy of prioritizing tariff refunds and expanding delivery options as key strengths that could attract younger members. The company also plans to open 28 new warehouses by fiscal year 2027, with a focus on underserved markets. This positive outlook aligns with broader Wall Street sentiment: out of 39 analysts covering Costco, 25 have issued buy or strong buy ratings.
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