Truist Raises Price Target on Costco to $977 Amid Strong Earnings Momentum

Truist Financial increased its price target for Costco Wholesale Corporation (COST) to $977, up from $926, signaling renewed optimism in the retailer’s near-term outlook. The upgrade follows recent quarterly results that showed consistent same-store sales growth and a 1.3% increase in membership numbers, exceeding prior expectations. These metrics indicate strong consumer retention and demand for Costco’s value-driven warehouse model. The revised target implies a potential upside of approximately 7.5% from COST’s current trading level, based on the most recent closing price. Truist highlighted Costco’s disciplined inventory management and margin resilience amid inflationary pressures as key drivers behind the improved outlook. The firm noted that the company’s e-commerce segment continued to expand, contributing 10.8% of total sales in the latest quarter, up from 9.4% a year earlier. The price target adjustment does not reflect a change in earnings forecasts but rather a recalibration of valuation based on recent performance trends. Truist believes Costco’s ability to maintain pricing power while managing costs positions it well for continued profitability, even in a high-rate environment. The stock’s forward P/E ratio remains below the consumer staples sector average, suggesting potential upside for long-term investors. Investors and analysts are closely monitoring COST’s upcoming earnings report, scheduled for May 2026, as a potential catalyst for additional revisions. The upgrade is one of several recent positive signals from Wall Street, though it has not yet triggered significant trading volume or market-wide shifts in the retail sector.