The firm reiterated its "buy" rating with a $185 price target.
Analysts are bullish on the company's upcoming credit card transition to Citigroup (C) and Visa (V) from American Express (AXP).
A year ago, Costco and American Express announced that they would be ending their exclusive partnership of 16 years, which led investors to be concerned, according to MarketWatch.
However, the warehouse operator later said Visa would replace American Express in the beginning of 2016 and that Citigroup would be the issuer of Costco co-branded cards.
Regarding this change, Nomura believes Costco will likely benefit from lower interchange fees and that the improved rewards program has "strong potential to drive this card to top-of-wallet for many consumers."
Shares closed Tuesday's trading session up 1.7% to $155.26.
(Costco is held in Jim Cramer's charitable trust Action Alerts PLUS. See all of his holding with a freetrial.)
Separately, TheStreet Ratings currently has a "Buy" rating on the stock with a letter grade of A-.
The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity and solid stock price performance. We feel its strengths outweigh the fact that the company shows weak operating cash flow.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: COST