Costco Wholesale's (COST) sales results in May demonstrate "steady execution" amid concerns about higher energy costs, elevated interest rates and less benefit from tax refunds, UBS Securities said in a note emailed Thursday.

"At least for Costco, this isn't occurring," UBS said, referring to fears of a weakening consumer. "In fact, we'd argue its strong momentum indicates its value proposition is even more compelling in this type of environment."

The warehouse retailer's investments in pricing on consumable items delivered a "healthy return" through accelerated comparable sales, UBS said.

UBS maintained its buy rating and $1,275 price target on the stock.

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