Costco stock today rallies after strong December sales – why analysts double down on bullish COST stock price target

Costco stock jumped more than 5% on Thursday after the retailer’s strong December sales performance, which led UBS to reaffirm its Buy rating and maintain a $1,205 price target, as per a report. Shares of Costco Wholesale (COST) are currently trading at $927.87 and InvestingPro data shows the stock is trading above its Fair Value, reflecting strong investor confidence despite the company’s $412.5 billion market capitalization, as per an Investing.com report.

Why Costco stock (COST) is up today: December sales performance boosts Costco stock outlook

The positive outlook for Costco stock is supported by solid December results. The company reported a 6.3% increase in core US comparable sales, building on a 9.8% gain in the same month last year. On a two-year stacked basis, comparable sales growth now exceeds 16%, the highest level seen in the past nine months, as per the Investing.com report. This performance came despite tougher year-over-year comparisons and aligns with Costco’s 8.34% revenue growth over the past twelve months.

Also read: Will the SCOTUS ruling on Trump tariffs jolt markets? What to know as the case comes up tomorrow

UBS highlights consistent regional sales growth

UBS noted that Costco’s core comparable sales improved across all regional segments on a two-year stacked basis compared with November, as per the Investing.com report. The firm described the December results as another strong showing and highlighted the company’s notably consistent performance.

Costco reports higher December and fiscal-year sales

Further supporting Costco stock, total sales in December rose 8.5% to $29.86 billion, up from $27.52 billion a year earlier. Sales for the first 18 weeks of the fiscal year reached $101.83 billion, marking an 8.3% increase from the same period last year.

Also read: Jensen Huang would owe $8 billion under new billionaire tax, and he’s perfectly fine with it

Costco stock price target: Analyst ratings on Costco stock remain mixed

Analyst views on Costco stock remain mixed but generally positive. Jefferies reiterated its Buy rating with a $1,050 price target, citing strong December sales, along with positive trends in ticket size and customer traffic.

Mizuho Securities added Costco stock to its 2026 top picks list and upgraded the shares to Buy, citing continued sales momentum and easing cost pressures and the firm also raised its price target to $1,000, as per a GuruFocus report.

DA Davidson maintained a Neutral rating and a $1,000 price target, pointing to 7.0% comparable sales growth in December. Telsey Advisory Group also reiterated its Outperform rating with a $1,100 price target, although it had expected a lower 2.2% comparable sales increase for the month.

On the cautious side, Guggenheim kept its Neutral rating, noting concerns about softening metrics and increased investor focus on membership renewal rates.

FAQs

What were Costco’s total December sales?
December sales rose 8.5% to $29.86 billion.

What is UBS’s price target for Costco stock?
UBS maintained a $1,205 price target.