11:17 AM EDT, 03/11/2024 (MT Newswires) -- Costco Wholesale ( COST ) is showing positive momentum across all metrics, BofA Securities said in a report emailed Monday.

Costco's fiscal Q2 adjusted earnings, excluding tax benefits, stood at $3.71 per share, ahead of estimates. The company's overall comparable sales grew by 5.8%, propelled by a 5.3% rise in foot traffic. BofA said. "While investors had likely hoped for a membership fee increase, we believe current trends support continued strong [membership fee income] growth," it added.

The company's membership fee income and trends are growing positively, with a 7.8% year over year increase in total member households, a rise in executive member penetration to 46.2% and an uptick in renewal rates to 92.9% in fiscal Q2, the report said.

BofA expects strong member engagement from strategic initiatives including digital advertising and enhancements and adjusted the company's fiscal 2024 EPS to $16.02 from $15.90 and fiscal 2025 EPS to $18.25 from $17.90. "[W]e expect continued MFI and traffic momentum supported by [Costco]'s strong value proposition as well as benefits from [Costco]'s strategic initiatives," BofA said.

BofA reiterated Costco's rating at buy and raised its price objective to $865 from $770.

Price: 714.00, Change: -11.56, Percent Change: -1.59