Wells Fargo Trims Costco (COST) Target Amid Mixed Retail Backdrop

Costco Wholesale Corporation (NASDAQ:COST) is included among the 13 Best Debt Free Dividend Stocks to Buy Now.

On December 19, Wells Fargo analyst Edward Kelly lowered the firm’s price target on Costco Wholesale Corporation (NASDAQ:COST) to $900 from $1,000 and kept an Equal Weight rating. The firm sees a mixed setup for 2026 across the group, though opportunity remains. Wells is constructive on broadlines and food service. Fiscal and tariff-related trade activity is already in motion, and momentum looks sustainable through the first half of EPS revisions. Food retail appears more challenging, and company-specific drivers will matter more than sector trends.

Costco Wholesale Corporation (NASDAQ:COST)’s membership model continues to stand out. Renewal rates in the US and Canada have stayed above 90% quarter after quarter. That matters, since more than 700 of the company’s 923 warehouses are located in the US, Puerto Rico, and Canada. A large, stable member base provides clearer visibility into future earnings.

The company offers two membership tiers: Gold Star at $65 and Executive at $130. More members are choosing to upgrade. In the most recent quarter, executive memberships rose more than 9% from the prior year. That trend supports higher fee income and deeper customer engagement.

Costco Wholesale Corporation (NASDAQ:COST) now operates 923 warehouses worldwide, with roughly two-thirds in the US, its core market. Scale has not slowed growth. In fiscal Q1 2026, which ended November 23, net sales reached $66 billion. Management continues to invest for the long term, with plans to open 28 net new warehouses in fiscal 2026.

There is still room to grow domestically, and international markets offer additional upside. China remains an area of interest. That expansion path supports revenue growth in 2026 and beyond and helps explain why investors continue to focus on the durability of the model.

Costco Wholesale Corporation (NASDAQ:COST) operates membership warehouse clubs with a simple goal of offering members strong value on quality, brand-name merchandise.

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Disclosure: None.