Costco (COST) Target Lowered at Truist on Valuation Concerns

Costco Wholesale Corporation (NASDAQ:COST) is included among the 15 Best Blue-Chip Stocks with Growing Dividends.

On December 12, Truist analyst Scot Ciccarelli cut Costco Wholesale Corporation (NASDAQ:COST) price target to $926 from $1,033 and kept a Hold rating. He noted the company had another solid quarter, with US comps up 5.9% and enterprise comps up 6.4%. Membership growth is still healthy at 5.2%, but it’s slowing a bit because more sign-ups are digital, where renewals take longer. This could put some pressure on the stock’s multiple.

In fiscal Q1 2026, CEO Ron Vachris said Costco opened 8 new warehouses, bringing the global total to 921. The company now plans 28 net openings for the year, down slightly from earlier targets due to delays in Spain. However, Vachris reaffirmed the goal of “30-plus net openings per year” in the future, mainly because the real estate team has grown, and strategies like converting existing buildings aim to cut costs and enhance growth.

Vachris also shared that warehouses opened in fiscal 2025 generated $192 million in annualized sales in their first year, up from $150 million for warehouses opened two years earlier. In addition, some high-volume stores will be relocated to improve the member experience and boost sales.

Overall, Costco Wholesale Corporation (NASDAQ:COST) posted $67.3 billion in revenue for the quarter, up 8.3% from last year. The company runs membership-only warehouse clubs, selling brand-name and private-label products in bulk at low prices.

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