Costco Stock (COST) Scores New Street-High Price Target after Another Strong Quarter

Costco COST +1.31% ▲ just earned a fresh Wall Street milestone. Following the retailer’s robust fiscal Q2 results, BMO Capital’s Kelly Bania raised her price target on COST stock to a Street‑high $1,315, reiterating a Buy rating.

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The company’s net sales rose 9.1% to $68.24 billion, and comparable sales were up 7.4%, aided by robust international growth and a 22.6% surge in digital sales. Earnings climbed to $4.58 per share, up from $4.02 a year earlier. Also, traffic and average ticket both increased, and Canada and other international markets outpaced U.S. growth.

Here’s Why the Analyst Is Bullish on Costco Stock

Bania said Costco continues to stand out at a time when many retailers are struggling. She noted that its steady performance comes from a strong competitive moat built on extreme value, disciplined pricing, and a low‑margin business model.

Costco’s EBIT margin, just 1.8% excluding membership fees, may make the stock look expensive at first. However, Bania argued that the model supports premium valuation, calling shares attractive up to 60x earnings.

The analyst also highlighted Costco’s financial strength, pointing to $39 in cash per share and a clean balance sheet. With membership renewal rates holding firm and traffic trends continuing to outperform peers, Bania believes Costco should remain a core long‑term holding for investors.

**What Is the Prediction for Costco Stock?  **

Overall, Wall Street has a Strong Buy consensus rating on Costco stock based on 19 Buys, four Holds, and one Sell recommendation. The average COST stock price target of $1,081.57 indicates 7% upside potential.

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