DA Davidson Reiterates Neutral Rating on Costco Wholesale (COST)

DA Davidson analyst Michael Baker reiterated a Neutral rating and $1,000.00 price target on Costco Wholesale (NASDAQ: COST)

The analyst comments "COST’s headline total comp, excluding gas and fx, of 6.2% was slightly ahead of May at 6.0%, while the U.S. comps, excluding gas and fx, of 5.5% matched May’s results. Total comps were 5.8%, an acceleration from 4.3% in April. The U.S. comps were up 4.7% in June, also an improvement from 4.1% last month. Traffic growth has fallen towards low-single digits after starting stronger in calendar 2025, even with lower gas price. But that concern should be partially offset by accelerating ticket growth. Cannibalization hurt results by 60 bps in June, down slightly from 70 bps in May, which was the first time COST mentioned cannibalization since 2020. We maintain our NEUTRAL rating as we look for a better entry point since COST is trading at a premium, 51x multiple versus consensus NTM estimates. Our price target remains $1,000, based on 52x our calendar 2026 EPS forecast."

For an analyst ratings summary and ratings history on Costco Wholesale click here. For more ratings news on Costco Wholesale click here.

Shares of Costco Wholesale closed at $982.09 yesterday.

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