Costco Wholesale (COST) PT Raised to $1,135 at Telsey

Telsey analyst Joseph Feldman raised the price target on Costco Wholesale (NASDAQ: COST) to $1,135.00 (from $1,125.00) while maintaining a Outperform rating.

The analyst comments "March 2026 Sales: Costco reported a better-than-expected headline comp of 9.4% vs our forecast of 7.7% and 6.4% a year ago. Excluding the total gas (200 bps) and FX (120 bps) tailwind of ~320 bps, the core merchandise comp came in at 6.2% vs. our projection of 4.8% and 9.1% last year—with a US comp, ex gas, of 6.2%, a Canada comp, ex gas and FX of 5.4%, and an Other International comp, ex FX, of 6.6%. The comp includes a ~40 bps negative impact from store cannibalization. In addition, the timing shift of Easter gave Costco one less shopping day during the month that caused a headwind of ~150 bps. · Traffic and Ticket: Traffic increased 1.5% (US 0.7%) as consumers continue to seek value. The average ticket increased 7.8% (4.6% ex gas and FX), reflecting inflation in gas prices and the FX tailwind. · Digitally-Enabled Trends: Digitally-enabled comparable sales increased 23.3% (22.5% in CC), driven by gains in Non-Foods, ongoing benefits from product expansion, including CostcoNext.com, and effective marketing. Note, “digitally-enabled” comparable sales include all sales delivered to members that are initiated through a digital device and Costco Travel. · Category Performance: Non-Food sales comped up MSD-HSD from consumers shopping for select discretionary categories, like jewelry, majors, and hardware. Food & Sundries comped up LSD-MSD, led by food, candy, and sundries, and Fresh Food comped MSD-HSD, with strength in meat and bakery. This is given favorable at-home consumption and the value-focused assortment."

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