Landon Capital

Costco Wholesale Corp (NASDAQ) delighted investors with a 6.5% rise in same-store sales for May, excluding gas and foreign exchange impacts. This impressive figure outpaced the 6.0% consensus estimate and built on April’s 5.5% growth.
Net sales also saw a hefty boost, climbing to $19.64 billion—an 8.1% jump from last year’s $18.16 billion.

Goldman Sachs (NYSE) analysts are still singing Costco’s praises with a ‘Buy’ rating and a 12-month price target of $851. Stifel analysts chimed in with a similar tune, setting their target at $850, crediting Costco’s annuity-like membership income and top-tier comparable growth.

But not all is smooth sailing in the warehouse aisles. Analysts noted potential pitfalls, including fierce competition from Inc (NASDAQ) and other online giants, a shaky macroeconomic landscape, rising rivalry in the warehouse club sector, potential dips in renewal rates, and pesky foreign exchange woes.