Bernstein Boosts Costco Wholesale Corporation (COST) Target, Sees Consumer Sentiment Still Soft

Core Insights - Bernstein analyst Zhihan Ma raised the price target for Costco Wholesale Corporation (COST) to $1,155 from $1,146, maintaining an Outperform rating, amidst mixed signals in U.S. retail and soft consumer sentiment [2] - Costco's January sales figures showed a total sales increase of 9.3% year over year, with comparable sales rising 7.1%, and a 6.4% increase when excluding gasoline price changes and foreign exchange [3][4] - Digital sales have become increasingly significant for Costco, representing 10% of total revenue as per the 2025 annual report [5] Sales Performance - Total sales for January increased by 9.3% year over year, while comparable sales rose by 7.1% [3] - Adjusted comparable sales growth improved from 6.2% in December to 6.4% in January, potentially influenced by severe winter storms in the U.S. [4] Digital Sales Growth - Costco's digital sales, which include transactions initiated through digital devices and sales from its Costco Travel platform, now account for 10% of total revenue [5] Company Overview - Costco operates membership warehouses and e-commerce platforms, offering a range of nationally branded and private-label products, sourcing most merchandise directly from suppliers [6]