10:40 AM EDT, 09/26/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We trim our 12-month target by $44 to $1,116, based on 50x our FY 27 (Aug.) EPS estimate of $22.32 (down from $23.15; FY 26 lowered to $20.15 from $20.62). Our revised EPS outlook reflects higher SG&A expenses from wage inflation and longer store hours. Still, we expect mid- to high-single-digit comparable sales growth, double-digit EPS growth, and continued strength in membership metrics, with Executive penetration now at 47.7% of paid members (up from 46.5% a year ago). We also see ample club unit growth in the U.S. and internationally (net 30 new clubs targeted for FY 26) and believe COST is still in the early stages regarding higher-margin revenue streams such as retail media. Despite strong growth in recent years, operating margins remain below most big-box peers at 3.8% in FY 25 (vs. 3.6% in FY 24), leaving room for expansion supported by retail media, supply chain efficiencies, increased Kirkland Signature penetration, lower shrink/spoilage, and improved labor productivity. We maintain our Buy opinion.