12:53 PM EST, 11/07/2024 (MT Newswires) -- Costco Wholesale ( COST ) sales performance in October was strong, driven by a robust 4.7% traffic growth, UBS said in a Wednesday report.

"With each month passing, COST is consistently proving that it remains a significant share gainer in retail," the report said.

While these results were not as robust as September on surface, Costco saw some 100-bp headwind from the pull-forward of demand into September from hurricanes and port strikes, UBS said. It also pointed to possible distraction from the US presidential elections.

"Considering those headwinds, we think this is still a strong showing," UBS said.

UBS said Costco continues to deliver compelling value, quality, and newness.

"As COST continues to pull these levers and invests in prices and wages, we think it will sustain its sales momentum and keep improving its returns," the report said. UBS has a buy rating on Costco with a price target of $940.

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