Bernstein raises Costco stock price target to $1,155 on international growth
#Costco #Bernstein #Stock Market #Price Target #International Growth #Membership Model #Investment Rating
📌 Key Takeaways
- Bernstein raised Costco's stock price target from $1,050 to $1,155.
- The firm maintained an 'Outperform' rating based on strong international expansion potential.
- Membership loyalty and high renewal rates are cited as the main drivers of financial stability.
- Costco's model remains resilient against inflation due to its reliance on fee-based revenue.
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Bernstein analysts raised their price target for Costco Wholesale Corporation to $1,155 from $1,050 during a market briefing in New York on Monday, citing the retailer's robust membership model and under-penetrated international markets as primary catalysts for future growth. The financial research firm reaffirmed its ‘Outperform’ rating for the warehouse club giant, signaling confidence in the company’s ability to maintain its competitive edge despite a broader economic environment marked by fluctuating consumer spending patterns. This adjustment reflects a bullish outlook on the corporation's long-term strategy of expanding its global footprint while leveraging high renewal rates among its existing customer base.
The analysts highlighted that Costco’s unique business model, which relies heavily on membership fees rather than just product margins, provides a stable and predictable revenue stream that remains resilient even during inflationary periods. By increasing the price target to $1,155, Bernstein is positioning the stock as a premium play in the retail sector, noting that the company's valuation is justified by its consistent sales growth and market-leading customer loyalty. The firm’s research suggests that as Costco enters new geographical territories, particularly in Europe and Asia, the scalability of its membership-driven approach will continue to drive earnings per share upward.
Furthermore, the report emphasized that Costco retains significant pricing power and operational efficiency, which are critical as the retail landscape becomes increasingly digital and competitive. While other retailers have struggled with inventory management and supply chain volatility, Costco’s streamlined selection and high-volume turnover have allowed it to preserve margins. Bernstein’s updated valuation also factors in the potential for future membership fee increases, a historical lever for the company that typically results in an immediate boost to the bottom line without significantly impacting subscriber retention.
🏷️ Themes
Finance, Retail, Market Analysis
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Costco
American multinational warehouse club chain
Costco Wholesale Corporation, doing business as Costco, is an American multinational corporation which operates a chain of membership-only big-box warehouse club retail stores. As of 2021, Costco is the third-largest retailer in the world, and as of August 2024, Costco is the world's largest retail...
Bernstein
Surname list
Bernstein is a common surname of German origin, meaning "amber" (literally "burn stone"). The name is used by both Germans and Jews, although it is most common among people of Ashkenazi Jewish heritage. The German pronunciation is [ˈbɛʁnʃtaɪn] , but in English, it is pronounced either as or .
Stock market
Place where stocks are traded
# Stock Market A **stock market**, also referred to as an **equity market** or **share market**, is the complex aggregation of buyers and sellers of stocks (shares). These financial instruments represent ownership claims on businesses and serve as a primary vehicle for capital allocation and corpor...
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try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry As Claude disrupts stock market, Anthropic researcher warns ’world is in peril’ Gold, silver prices rise amid U.S.-Iran tensions, blowout January payrolls data Dow halts three-day win streak as blowout jobs data curbs rate cut bets Citi pushes back Fed rate cuts to May after blowout January jobs report (South Africa Philippines Nigeria) Bernstein raises Costco stock price target to $1,155 on international growth Analyst Ratings Published 02/09/2026, 08:49 AM Bernstein raises Costco stock price target to $1,155 on international growth 0 COST 0.73% Investing.com - Bernstein SocGen Group raised its price target on Costco Wholesale (NASDAQ:COST) to $1,155.00 from $1,146.00 while maintaining an Outperform rating. The retail giant, with a market capitalization of $444 billion, has seen its stock gain over 16% year-to-date. The research firm cited Costco’s long growth runway internationally as a key factor supporting its updated valuation model, which now points to approximately 25% upside potential for the stock. This comes despite InvestingPro data showing the stock trading at a high P/E ratio of 53.45, with technical indicators suggesting overbought conditions. InvestingPro analysis indicates Costco appears overvalued compared to its calculated Fair Value. Bernstein noted that Costco’s U.S. comparable sales have stabilized in the mid-to-high single-digit percentage range despite facing tough year-over-year comparisons. The firm expects Costco’s top-line comparisons to ease in the second half of the year, with membership renewal rates likely to improve during the same period. These factors, combined with the prospect of a special dividend, could support continued momentum in Costco shares, according to Bernstein’s analysis. In other recent news, Costco Wholesale reported a 9.3% increase in January sales, reaching $21.33 billion, compared to $19.51 billion in the same period last year. For the first 22 weeks of its...