Investing.com - Costco Wholesale Corp (NASDAQ:COST) announced a significant rise in net sales for May 2024, reaching $19.64 billion, an 8.1% increase compared to the $18.16 billion reported in the same period last year.
Additionally, the first 39 weeks of the fiscal year saw net sales of $186.07 billion, marking a 6.9% increase from $174.07 billion in the previous year.
Analysts from Goldman Sachs (NYSE:GS) have given Costco a 'Buy' rating, setting a 12-month price target of $851.
Stifel analysts also set a bullish price target of $850, attributing this premium valuation to Costco's annuity-like membership income and above-peer comparable growth.
However, they also note potential risks, including competition from Amazon.com Inc (NASDAQ:AMZN) and other e-commerce retailers, slowing macroeconomic trends, rising competition in the warehouse club space, lower renewal rates and foreign exchange pressures.