Baird has reaffirmed its positive stance on Costco Wholesale (NASDAQ: NASDAQ:COST), maintaining an Outperform rating and a price target of $975.00.
The firm's analysis highlighted Costco's consistent global core comparable sales, excluding gas and foreign exchange impacts, which remained steady in August with a 7.1% increase, closely matching July's 7.2% rise.
The performance was attributed to a balance between stronger customer traffic and a slight dip in average ticket growth.
The report observed stable growth across Costco's core merchandise categories. It was noted that while Canada experienced a slowdown, this was counterbalanced by an acceleration in both the United States and other international markets.
Following the release of Costco's fiscal fourth quarter net sales, which amounted to $78.2 billion and marginally exceeded Baird's projections, the firm has adjusted its forecast for the company's fiscal fourth-quarter earnings per share (EPS) to $5.10, slightly above the consensus estimate of $5.07.
Costco's consistent performance, as detailed by Baird, suggests that the retailer is effectively navigating the challenges posed by the current market conditions.
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