Costco Analysts See Market Share Gains, High Renewal Rates Coming: 'Strongest And Most Consistent Comp Growth' In Retail

Costco Wholesale Corporation COST analysts break down highlights from the company's third-quarter financial results and predict what's ahead.

The Costco Analysts: Truist analyst Scot Ciccarelli maintains a Hold rating on Costco and raises the price target from $995 to $1,042.

Telsey analyst Joseph Feldman maintained an Outperform rating with a $1,100 price target.

Truist on COST: In a new investor note, Ciccarelli said the retailer had "another strong quarter" and showed improving margins.

While the analyst highlights several positives from the quarterly results, he remains on the sidelines with a Hold rating with concerns about valuation.

"As we have continued to highlight, Costco is generating the strongest and most consistent comp growth in basically all of retail," Ciccarelli said.

The analyst said Costco offers "extreme value proposition for members" mentioning strong merchandising and a "treasure hunt experience" for its customers.

Ciccarelli said the stock trades at around 53x estimated fiscal year earnings per share and he would want a more attractive entry point to buy shares.

"We believe it's challenging to put fresh $ to work in COST."

Telsey on COST: A strong third quarter could show market share gains for Costco, Feldman said in a new investor note.

"Costco reported a strong 3QF25 core comp trend and healthy profits, reflecting the continued success of its business model and high member loyalty," he wrote.

The analyst said the company's comp same-store sales growth of 8% was impressive and traffic was up 5.2% year over year as well.

Feldman said Costco is managing the impact of tariffs well. The company is leveraging its global sourcing operations and key vendor relationships to help keep costs in line in the tariff era.

For future growth, Feldman highlights Costco opening more stores, introducing new trend-right items, lowering prices on everyday items, extending gas station opening hours and enhancing digital experiences. The analyst said these items will help the company be more relevant to members and help with renewal rates.

"We expect the company to remain a profitable share gainer, with its solid sales and high membership renewal rates," Feldman added.

COST Price Action: Costco stock was up 3.7% to $1,046.29 on Friday, compared to a 52-week trading range of $788.20 to $1,078.24. Costco stock is up 15% year-to-date in 2025.

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