FINWIRES · TerminalLIVE
FINWIRES

Research Alert: CFRA Keeps Buy Opinion On Shares Of Costco Wholesale Corporation

By

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We trim our 12-month target by $5 to $1,130, about 48x our FY 27 (Aug.) EPS estimate of $23.55 (up from $22.68; FY 26 raised to $20.70 from $20.57). While this 48x multiple remains well above COST's long-term average of 37x, the premium relative to the broader market is somewhat less extreme. At approximately 2.2x the market multiple, COST trades below the peak relative valuation of 2.7x reached in early 2025. COST's quarter ultimately fell short of elevated expectations, which we attribute to: 1) decelerating paid member growth, which slowed to 4.1% from the 6%-7% range a year ago; and 2) greater-than-expected reinvestment, which impacted margins. Looking ahead, we believe increased international club openings should help reaccelerate paid member growth, while the company's burgeoning retail media business could provide a meaningful long-term margin tailwind. We see a special cash dividend looming with the company's cash balance at $20B (+35% Y/Y).

Related Articles

Research

Research Alert: CFRA Maintains Buy Rating On Autodesk, Inc.

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We raise our target to $379 from $339, based on 27x our FY 28 EPS estimate, with our multiple representing a discount to three- and five-year historical averages of 28-31x, reflecting elevated AI competitive risks despite ADSK's strong defensive positioning. We maintain our FY 27 EPS estimate of $12.55, incorporating the Q1 beat but adjusting FY 28 downward to $14.05 from $14.40 for expected margin compression from MaintainX dilution. The company is executing well across all dimensions, with Q1 revenue up 18% Y/Y driven by AECO strength (+20%) and AutoCAD growth (+15%), while billings growth of 18% Y/Y signals solid forward momentum. We view near-term margin pressure from the acquisition as short-term pain for long-term gain, with MaintainX growing 50%+ and closing the design-make-operate loop with operational data that enhances AI capabilities. Cash generation remains robust, with Q1 operating cash flow of $893M (+58% Y/Y) and free cash flow of $876M (+58% Y/Y) demonstrating the underlying business health.

$ADSK
Research

Research Alert: CFRA Maintains Buy Opinion On Shares Of Dell Technologies Inc.

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We sharply lift our price target to $465 from $263, 23x our FY 28 (Jan.) EPS view, well above DELL's three-year average (~11x) on massive AI tailwinds. We raise our FY 27 EPS view by $5.21 to $18.16 and lift FY 28's by $5.15 to $20.20. DELL delivered a blowout Q1, with sales up 88% to $43.8B, fueled by insatiable AI server demand, where sales grew by an eye-popping 757% to $16.1B and bookings came in higher at $24.4B (AI backlog up 19% Q/Q to $51.3B). Pull-ins are playing a factor, but we think core demand remains impressive and durable, supported by DELL's AI pipeline incredibly remaining "multiples above" its backlog total. Growing demand for inference/agentic products has also encouraged more edge computing/CPU/storage workloads, broadening DELL's exposure to AI upside. This was clearly demonstrated in Q1, with Traditional Servers (19% of sales) growing by 92% Y/Y and seeing "significant unit growth," while Storage (10%) grew by 8% with improving margins. CSG grew 17%, supported by PC refreshes/AI PCs.

$DELL
Research

Research Alert: CFRA Maintains Strong Buy Opinion On Shares Of Advanced Micro Devices, Inc.

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We raise our 12-month target to $600 from $500, on a P/E of about 35x our 2028 EPS estimate, which is above its peers but below its historical forward averages. We see AMD closing the competitive gap with NVIDIA as it launches the MI450x Series in the second half of 2026, as it prepares to shift to rack-scale solutions, which offer data center server sales upside. We are also growing more optimistic about opportunities tied to CPU server demand, as we believe the rise of agentic AI shifts CPU-to-GPU ratios from traditional 1:4 or 1:8 in training toward 1:1 or higher in production deployments. Extending lead times and emerging industry-wide CPU shortage should support higher prices, and we see potential for 50%+ x86 server CPU market share over time. AMD's shift to large-scale rack-scale systems remains the biggest opportunity for the company in the coming years. Furthermore, we are encouraged by recent customer orders (Meta and Oracle), as we see a long tail opportunity over the next three to five years.

$AMD