Costco’s (COST) Global Growth Story Gains Momentum, Says Northcoast

Core Insights - Costco Wholesale Corporation (NASDAQ:COST) has been upgraded to Buy from Neutral by Northcoast, with a price target set at $1,100, highlighting its strong competitive position in the US and potential for international expansion [2] - The company has demonstrated consistent success in international markets, with significant growth opportunities in developed economies where consumers prioritize savings and discretionary spending [2] - Costco's financial health is underscored by its substantial cash reserves, which may allow for a special dividend of up to $20 per share [2] Sales and Membership Trends - Despite a more than 4% decline in stock price since the start of 2025, management addressed concerns regarding slowed membership sign-ups, attributing it to changing behaviors among younger customers who prefer online sign-ups and renewals [3] - Costco reported record Black Friday non-food orders exceeding $250 million, with digital sales increasing by 20.5% for the quarter, website traffic rising by 24%, and mobile app traffic surging by 48% [4]