Jefferies Maintains Buy Rating on Costco (COST) After Q3 Report

On May 30, analyst Corey Tarlowe from Jefferies reiterated a Buy rating on Costco Wholesale Corporation (NASDAQ:COST), keeping the price target at $1,180.00. The rating was issued after the company released its fiscal Q3 2025 and year-to-date results on May 29.

The analyst based the rating on Costco Wholesale Corporation’s (NASDAQ: COST) strategic initiatives and strong performance, with notable growth in traffic and ticket sales across all geographic segments. Traffic or shopping frequency rose 5.2% across the globe and 5.5% in the US, while the average transaction or ticket grew 1.1% in the US and 0.4% worldwide. Comparable sales in the US rose 6.6%, or 7.9% excluding gas deflation.

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A grocery store shelf lined with the company’s nutritional products.

The analyst attributed this performance to be indicative of Costco Wholesale Corporation’s (NASDAQ:COST) ability to effectively attract and retain customers. Tarlowe also stated that management adeptly managed tariff exposures by enhancing local production and rerouting goods, which helped maintain competitive pricing.

Costco’s investment in technology further supports the analyst’s optimistic rating, which is anticipated to enhance operational efficiency and customer experience. These include digital membership enhancements and the ‘Scan-and-Go’ feature.

Costco Wholesale Corporation (NASDAQ:COST) operates membership-only big box warehouse club stores and is one of the most popular department stores in the US. It offers its customers elaborate offerings, including food, beverages, groceries, and more.

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Disclosure: None.