Street View: Costco's growth runway to stretch further

Costco Wholesale COST.O beat estimates for holiday-quarter sales and profit on Thursday and said it would cut prices if it received any refunds from the U.S. Supreme Court's decision to strike down President Donald Trump's emergency tariffs

Shares marginally down premarket

SCALE, VALUE PRICING AND LOYALTY STRENGTH

Morgan Stanley ("overweight," PT: $1,130) says the results underscore COST's structural strengths in supply chain efficiency, value pricing, and scale, which will continue to support market share expansion and long-term earnings growth

J.P.Morgan ("overweight," PT: $1,060) says "the nuts and bolts" of the business remain strong and intact, with a long unit growth runway and opportunity to grow online wallet share (grocery and general merch)
Adds, fuel from advertising revenues and improving e-commerce profitabilty to drive modest margin expansion

Jefferies ("buy," PT: $1,130) says, looking ahead, unit growth, capex investment, and pricing discipline underpin continued share gains

Morningstar (fair value: $650) says COST's expanding profitability and membership loyalty reinforce its strength against rivals