Jim Cramer said Costco shares are beginning to look attractive again, especially after a fresh analyst upgrade. Mizuho upgraded the membership-only retailer to outperform from neutral on Monday and raised its price target to $1,000 from $950, implying a 17% upside. The analysts pushed back on investor concerns about slowing membership growth and comparable sales growth, noting that about half of its recent U.S. warehouse store openings are “fill-ins,” new stores in successful markets to alleviate congestion and overflow. It’s a dynamic that points to strong underlying demand rather than weakness. This “insatiable demand is a high-quality problem,” Mizuho wrote in a note to clients. Shares of Costco responded with 2% gain. It was a much-needed lift. The stock lost 3% in 2025, compared to the S & P 500’s 16% gain. One issue: The company’s high price-to-earnings multiple, typically reserved for high-growth tech companies, left little room for error. So when Costco delivered a mixed quarter on Dec. 11, showing renewal rates drifting lower and customers more selective in their spending, the stock’s premium valuation was no longer justifiable to many investors. It’s why we decided to cut our Costco position on Dec. 16. Jim said management needs to address two key factors — the dip in renewal rates and slower spending — in the upcoming quarter, given that Costco’s offerings are among the best in the retail sector. Costco is set to publish its monthly sales data on Jan. 7 and then hold an annual investor meeting on Jan. 15. “I’m a short-term sufferer, long-term lover of Costco, and I always like shopping there,” Jim said Monday on “Squawk on the Street.” Costco’s stock chart is also starting to look more attractive, according to Cramer’s favorite chartist, Larry Williams, who flagged Costco as one of his preferred setups. “That made me sit up and listen because it’s been horrible,” Jim said during the Investing Club Morning Meeting . Looking ahead, Mizuho said Costco’s customer trade-up activity is toward higher-quality, more expensive products. The firm also noted that its first-quarter premium member additions were running two to three times the total membership rate, a key reason it added the stock to its “Top Picks” list. Costco’s long-term story as a preferred membership retailer remains intact with additional upside ahead. Domestic renewal rates are above 90%, well above the 10-year average, according to Mizuho, and if key metrics reaccelerate, that could be a catalyst for Costco stock to go higher.