On Nov 22, major Wall Street analysts update their ratings for $BJ's Wholesale Club Holdings (BJ.US)$, with price targets ranging from $98 to $110.
Morgan Stanley analyst Simeon Gutman maintains with a hold rating, and adjusts the target price from $90 to $98.
Goldman Sachs analyst Kate McShane upgrades to a buy rating, and adjusts the target price from $93 to $102.
UBS analyst Mark Carden maintains with a buy rating, and adjusts the target price from $102 to $108.
Wells Fargo analyst Edward Kelly maintains with a buy rating, and maintains the target price at $100.
Jefferies analyst Corey Tarlowe maintains with a buy rating, and adjusts the target price from $105 to $110.
Furthermore, according to the comprehensive report, the opinions of $BJ's Wholesale Club Holdings (BJ.US)$'s main analysts recently are as follows:
BJ's Wholesale demonstrated several positives in their third quarter earnings results, notably with core same-store sales surpassing expectations and robust member engagement. Although the decision not to adjust earnings for a one-time legal settlement might optically challenge high single to low double-digit earnings growth in the upcoming year, the long-term financial goals for fiscal 2025 are still considered achievable on an underlying basis.
BJ's Wholesale exhibited a strong Q3 performance, which appears to contrast with its relatively conservative Q4 margin guidance. Analysts are optimistic about the company's continued momentum in membership and the recent fee increase. Additionally, new club openings, digital growth, and the Fresh 2.0 initiatives are anticipated to necessitate additional labor, which may constrain margin expansion.
Improvements in margins, fee increases, and associated reinvestment opportunities in club growth, alongside successful digital initiatives and various merchandise enhancements, are posited as promising drivers for growth.
The firm attributes its adjustment to BJ's Wholesale's announcement about its first membership fee increase in seven years. Additionally, consumer stock-up behavior due to recent major storms, where BJ's has approximately 3% of its total stores, contributed a 1% increase to its core Same Store Sales (SSS) in Q3. Even excluding this lift, the core comp growth of 3.8% exceeded expectations by approximately 80 basis points.
While there were some irregularities in BJ's Wholesale's third-quarter headline results, the underlying performance exceeded expectations. Additionally, critical membership Key Performance Indicators (KPIs) remain consistent with those of leading industry peers like Costco.
Here are the latest investment ratings and price targets for $BJ's Wholesale Club Holdings (BJ.US)$ from 9 analysts:
Note:
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