Street View: Costco holds firm on value and membership strength

** Costco Wholesale COST.O beat fourth-quarter revenue and profit estimates on Thursday, as Americans hunting for bargains flocked to the membership-only retail chain to snap up lower-priced essentials

** Shares dipped slightly to $938.5 in premarket

TARIFFS MAY TAP, BUT WAREHOUSE WON’T SNAP

** Morgan Stanley ("overweight," PT: $1,130) says COST shows steady performance in membership, fee income and core profitability, driven by its scale, value and supply chain strength

** "While renewals ticked down marginally due to a specific campaign, membership growth & tier upgrade momentum is intact," adds MS

** J.P. Morgan ("overweight," PT: $1,050) says the cost impact from longer store hours caused a small margin dip but was contained, and believes Costco’s customer base is well-positioned to benefit from expected spring tax refunds

** Citigroup ("neutral," PT: $1,065) says COST buyers remain focused on value in non-foods, and the holiday and seasonal product mix has been thinned to balance tariffs and support member value

** D.A. Davidson ("neutral," PT: $1,000) says Costco saw a modest tariff impact this quarter, managed through vendor negotiations, mix and sourcing shifts, with price hikes as a last resort