11:22 AM EST, 12/13/2024 (MT Newswires) -- Costco Wholesale's ( COST ) "earnings momentum will likely continue to accelerate over the next few quarters," Morgan Stanley said Friday in a report.

The company continues to attract high-income consumers by leveraging its scale and providing value, particularly in discretionary categories like home goods, sporting goods, beauty and electronics, the report said.

Investments in e-commerce technology, including better logistics, inventory visibility and improved delivery speed, started to yield results with potentially "more to come later," Morgan Stanley said.

Costco's initial partnerships with consumer packaged goods companies on retail media have "exceeded expectations, suggesting there is significant value to be unlocked, over time," the report said.

Morgan Stanley raised its price target on the company to $1,150 from $950 and reiterated its overweight rating.

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