Stifel analyst Mark Astrachan raised the firm’s price target on Costco to $800 from $735 and keeps a Buy rating on the shares after the company reported fiscal Q2 results that included EBIT in-line with consensus. On a potential membership fee increase, the company reiterated its expectation for “when not if,” though inaction thus far suggests it has visibility on enough levers to drive the business, as evident in likely share gains across most of the company’s businesses, low-single-digit sales contribution from new store openings and gross margin expansion, says the analyst, who lifted the firm’s FY24 and FY25 EPS estimates “slightly” and notes that the firm prefers to add on weakness.
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