Truist Analyst Cools Costco Stock (COST) Hype Despite Blockbuster August Sales - ’Don’t Celebrate Just Yet’

Truist throws cold water on Costco's victory lap despite roaring August numbers. The analyst remains stubbornly cautious—refusing to join the retail investor parade.

Strong sales? Sure. But Truist isn't biting. The firm holds back on upgrades, pointing to valuation concerns that bubble-wrap enthusiasts seem to ignore.

Another quarter, another case of Wall Street analysts doing what they do best: showing up late with a wet blanket. Maybe they’re waiting for a membership discount on optimism.

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Closer Look at Costco’s August Sales Report

In August, comparable sales ROSE 6.3% company-wide. After excluding fuel and foreign exchange impacts, Costco’s total comparable sales were even stronger at 6.9%. Sales grew steadily across regions, rising 6.7% in the U.S., 9.4% in Canada, and 5.3% in international markets.

Full-year net sales reached $269.9 billion, an 8.1% increase year-over-year. The upside was due to steady demand across groceries, household items, fresh food, and other products.

Costco’s digital channels continued to shine. E-commerce sales jumped 18.3% in August. For the full year, online sales rose 16.1%, signaling strong demand for Costco’s online offerings.

Truist Analyst Raises Valuation Concerns

Despite the upbeat numbers, Ciccarelli reiterated a Hold rating and maintained his $1,042 price target on COST stock. He acknowledged the continued strength in Costco’s Core business, citing the company’s ability to attract a wide customer base with competitive pricing and consistent value.

However, the five-star analyst cited valuation concerns, noting that the stock is trading at roughly 50 times projected 2025 earnings.

Ciccarelli said, “we stay on the sidelines as we look for a more attractive price-point for entry.”

What Is the Prediction for Costco Stock?

Turning to Wall Street, COST stock has a Moderate Buy consensus rating based on 11 Buys and eight Holds assigned in the last three months. At $1,088.31, the average Costco stock price target implies 12.96% upside potential.