Telsey Advisory Group Raises Costco Wholesale PT to $1100 from $1100.

Telsey Advisory Group Raises Costco Wholesale PT to $1100 from $1100.

In a recent research update, Telsey Advisory Group LLC (TAG) has revised its price target for Costco Wholesale Corporation (COST) to $1100, maintaining its "hold" rating on the stock [2]. This adjustment follows a series of downgrades and changes in earnings estimates across various financial institutions, reflecting a cautious stance on the retailer's performance.

TAG's decision to raise its price target aligns with the broader market sentiment, which has seen several analysts downgrade COST from a "buy" to a "hold" rating. For instance, Gordon Haskett, Truist Financial, and Cfra Research have all recently adjusted their ratings for COST, indicating a more cautious outlook [2]. Additionally, Morgan Stanley dropped its price target for COST from $160.00 to $112.00, setting an "overweight" rating on the stock [2].

The adjustment in price target comes amidst mixed earnings reports and changes in institutional holdings. While COST reported earnings per share (EPS) of $1.30 for the quarter, missing analysts' consensus estimates of $1.65, it also reported a net margin of 4.06% and a return on equity of 31.11% [2]. The company's revenue for the quarter was down 2.8% compared to the same quarter last year, indicating a challenging environment for the retailer.

Institutional investors have also been modifying their holdings of COST. Mattson Financial Services LLC, Acadian Asset Management LLC, Geneos Wealth Management Inc., Intech Investment Management LLC, and Focus Partners Wealth have all increased their stakes in COST during the first quarter of 2025 [2]. This trend suggests that while there are concerns about the company's performance, there is still significant interest from institutional investors.

In conclusion, Telsey Advisory Group's revised price target for COST reflects a cautious but balanced view of the retailer's prospects. The decision to raise the target aligns with broader market sentiment and the changing dynamics of the retail sector. Investors should closely monitor COST's earnings and operational performance to gauge the accuracy of the revised price target.

References:
[1] https://www.businesswire.com/news/home/20241216073562/en/Telsey-Advisory-Group-LLC-announces-U.S.-Equity-Research-alliance-with-Santander
[2] https://www.marketbeat.com/instant-alerts/target-nysetgt-downgraded-to-hold-rating-by-telsey-advisory-group-2025-05-23/