BofA lifts Costco price target after membership fee hike

Bank of America Securities raised its price target on wholesale retailer Costco (COST) from $874 to $962 per share. Costco stock saw a dip in Thursday’s regular trading hours as it announced its first price hike on membership fees in seven years.

Market Domination Overtime hosts Julie Hyman and Josh Lipton talk on the analyst note and how Costco historically performs after raising membership fees.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime.

This post was written by Luke Carberry Mogan.

Video Transcript

Bank of America is raising its price target on Costco amid strength in same store sales, and it’s increase to membership fees.

And it’s part of a broad, um, positive reaction to the company raising its, uh, membership fees.

But as you can see here, the stock is straight down.

Yeah, I mean, at least on the street.

I mean, the stock is up a lot this year, So this is what we were waiting for.

This is the membership fees.

Yeah, exactly.

And and, you know, there have been some analysts as well that have, uh, looked into the history of how Costco then does after it raises its membership fees.

Um, and it tends to go up.

We heard Corey Tarlow of Jeffrey’s at the top of the show.

He was on the morning show, but we heard a little bit of his commentary where you talked about that.

People don’t leave Costco even when the even when the fees go higher.

Oh, absolutely.

That my old man, it’s the only place he’s going for steaks.

Absolutely.

Bank of America, By the way, they say the strong June comp and the announcement of this fee increase means they take their price objective Julie to 962.

Given, they say, continued calm strength and greater earnings visibility.

So they’re fans.