BTIG Raises Costco (COST) Target as Membership Income and Traffic Stay Strong

Costco Wholesale Corporation (NASDAQ:COST) is included among the 14 Stocks on the Verge of Becoming Dividend Aristocrats.

On March 6, Bob Drbul of BTIG raised the firm’s price recommendation on Costco Wholesale Corporation (NASDAQ:COST) to $1,125 from $1,115 and maintained a Buy rating after the company reported a Q2 earnings beat. The analyst said gross margin expanded by 17 basis points during the quarter. The improvement was supported by 19 basis points of favorable developments in other parts of the business. Membership income also remained strong, rising 14%, according to the research note. BTIG added that traffic and digital performance stayed healthy. Comparable traffic increased 3.1% worldwide.

During the company’s fiscal Q2 2026 earnings call, CEO Ron Vachris spoke about the changing tariff environment and the company’s approach to protecting member pricing. He said the company has been working to limit the effect of tariffs on product prices. Several strategies are being used, including shifting production locations, consolidating global purchasing, and increasing sourcing through the Kirkland Signature private-label brand.

Vachris also noted that the company reduced prices on several key items during the second quarter. These included eggs, cheese, coffee, and certain paper products as inflation in those commodities eased. On expansion, he said Costco opened four warehouses during the quarter. The openings included one relocation and one new US location, along with two additional business centers in Canada. Those additions brought the company’s global warehouse count to 924. Vachris said the company expects about 28 net new warehouse openings in fiscal 2026. Over the longer term, Costco aims to open more than 30 new locations each year.

Costco Wholesale Corporation (NASDAQ:COST) operates membership warehouses and e-commerce platforms that offer nationally branded and private-label products across a wide range of categories. The company buys most of its merchandise directly from suppliers and routes it to cross-docking consolidation depots or directly to its warehouses.

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