In front of Costco Due to the first quarter results, many analysts increased their price targets on the stock. Among them, Oppenheimer’s Rupesh Parikh increased his price target to $1,075 from $980 and maintained a Buy rating on the stock.

Parikh remains positive about Costco’s ability to grow its market share. He believes the company is well-positioned to maintain its robust sales momentum. Oppenheimer also highlighted Costco’s improved merchandising strategy, such as gift card options and the introduction of premium brands in stores. It is worth noting that Parikh is a five-star analyst with a 65% success rate and an average return of 12.10% per review.

Likewise, Jefferies analyst Corey Tarlowe increased his price target for Costco from $1,050 to $1,145 and at the same time reiterated the buy recommendation. Tarlowe noted that November sales were “solid” despite foreign exchange headwinds. Although the company slightly lowered its comp and net sales estimates, the price target was raised slightly to reflect a higher valuation multiple driven by the company’s continued momentum.

However, three analysts maintained their Hold ratings ahead of the first quarter announcement.

Options traders are expecting a big move

Using TipRanks’ options tool, we can estimate options traders’ expectations for the stock’s post-earnings report. Based on a strike price of $980, with call options priced at $23.10 and put options priced at $10.66, the expected price movement based on the at-the-money straddle is 3.43%.

Is Costco Stock a Buy or Sell?

As for Wall Street, Costco has a consensus rating of Moderate Buy based on 17 Buys and seven Hold assignments over the past three months. At $995.85, the average COST price target implies an upside of 0.25%.

See more COST analyst ratings

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