Mizuho has reaffirmed its Outperform rating on shares of Costco Wholesale (NASDAQ: COST), maintaining a price target of $1,065. The brokerage firm highlighted that heightened media coverage and social media activity regarding emergency preparedness from governments in Japan and the U.K. have triggered pandemic-like buying behaviors. This sentiment appears to have extended to the United States, where weekend checks revealed stronger traffic at Costco warehouse locations. Mizuho noted that solar generators were sold out at the stores they visited.
The analyst firm views Costco as a defensive play heading into the end of the year, pointing to the retailer's history of sales increases during emergency and weather-related scenarios, including an instance earlier in 2026. Currently trading at a P/E ratio of 48.97, InvestingPro data suggests the shares are overvalued relative to their Fair Value estimate, placing Costco on a list of most overvalued companies. Despite this valuation metric, the retailer has delivered an 18% year-to-date return and holds a "GREAT" financial health score according to InvestingPro metrics.
Looking ahead, Mizuho expects October comparable sales to remain strong with an improved exit rate, anticipating that Wednesday's monthly sales release will provide another positive data point. In broader market developments, several other analysts have recently issued reports on Costco. Baird maintained an Outperform rating citing a reacceleration in global core comparable sales to 7.6% in September. Tigress Financial Partners raised its price target from $1,065 to $1,250, attributing the move to accelerating membership growth and AI-enabled digital commerce. Meanwhile, Truist Securities reiterated a Hold rating based on consistent store growth, and D.A. Davidson maintained a Neutral stance while emphasizing growth opportunities in Texas.
Sources: Investing.com News.