Investing.com – Costco Wholesale Corp (NASDAQ:) reported same-store sales increased 6.5% (excluding gas and foreign exchange) in May. The figure topped the consensus forecast of 6.0% and represented an acceleration in growth from April’s 5.5% rise.
Net sales were also reported to rise significantly to $19.64 billion, up 8.1% from the $18.16 billion reported in the same period last year.
Analysts at Goldman Sachs (NYSE:) maintained a Buy rating, setting a 12-month price target of $851.
Stifel analysts set a price target of $850, attributing this premium valuation to annuity income from Costco memberships and outperforming comparable growth.
However, they also noted potential risks, including competition from Amazon.com Inc (NASDAQ:) and other e-commerce retailers, slowing macroeconomic trends, increased competition in the warehouse club industry, declining renewal rates and currency pressures.