Wall Street saw a lot to like in Costco's earnings report last Thursday, as customers flocked to the warehouse club's stores and website. Costco's earnings per share in the fiscal third quarter were $3.78, beating the $3.70 expected from analysts surveyed by LSEG. Revenue was $58.52 billion versus consensus estimates of $58.07 billion. Bank of America noted in a note Friday that e-commerce growth was driven by electronics, gold bullion and silver coins, as well as gift cards. The bank believes Costco will continue to benefit from digital improvements and membership growth. COST 1Y Mountain One-Year Costco Performance Bank of America analyst Robert Ohms reiterated his buy rating and increased his price target to $874 from $865, suggesting an upside of about 8% from Friday's close. “We expect…COST (and other warehouse clubs) to gain share in the current environment as consumers continue to adjust to higher prices, making COST's value proposition more attractive,” he said. Loop Capital also remains bullish and raised its price target on the stock to $890 from $840, implying an upside of about 10% going forward. The company expects continued growth in revenue and same-store sales this year. “This is driven by our observation of enhanced omnichannel capabilities, international expansion and product innovation including the widely popular Kirkland brand,” analyst Laura Champagne wrote in a note on Sunday. Costco shares are up about 23% year to date.
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Analysts are becoming more bullish on Costco because it helps consumers fight inflation
