BJ’s Wholesale stock price target lowered to $110 at Evercore ISI

Investing.com - Evercore ISI has reduced its price target on BJ’s Wholesale (NYSE:BJ) to $110.00 from $117.00 while maintaining an "In Line" rating on the stock. The company, currently valued at $12.69 billion, trades at a P/E ratio of 22x, which InvestingPro analysis indicates is high relative to its near-term earnings growth potential.

The firm cited BJ’s second-quarter performance, which showed mixed results including a record high of over 8 million members and a 20 basis point improvement in EBITDA margin, alongside rising premium tier memberships and engagement. According to InvestingPro data, six analysts have recently revised their earnings estimates downward for the upcoming period, suggesting some caution about near-term performance. Get access to 10+ additional exclusive ProTips and comprehensive analysis with an InvestingPro subscription.

Despite these positive indicators, Evercore ISI noted that BJ’s 2.3% comparable sales growth lagged behind the broader grocery industry, while tougher second-half comparisons have raised concerns about slowing topline growth in a competitive retail landscape.

The research firm maintained its earnings per share estimate of $4.35 for the current year but revised its second-half comparable sales forecast downward from 2.8% to 1.5%, reflecting slower second-quarter trajectory in general merchandise.

Looking ahead, Evercore ISI highlighted BJ’s planned expansion into Dallas as a key focus for early 2026, which will test the company’s ability to succeed in a competitive market outside its Northeastern core region.

In other recent news, BJ’s Wholesale Club Holdings Inc. reported mixed financial results for its second quarter of fiscal year 2026. The company achieved an earnings per share of $1.14, surpassing the forecast of $1.10, but revenue fell short at $5.38 billion compared to the expected $5.49 billion. Despite the earnings beat, the stock experienced a decline following the report. Goldman Sachs noted that BJ’s saw a 2.3% increase in comparable sales, excluding gasoline, driven by traffic growth and market share gains. TD Cowen and DA Davidson both lowered their price targets for BJ’s, citing weather-related challenges and a miss on comparable sales estimates, though they maintained a Buy rating. UBS also reduced its price target, citing macroeconomic concerns, while acknowledging the company’s investments and improvements from its Fresh 2.0 initiative. Analysts observed that BJ’s performance improved as weather conditions normalized during the quarter. These developments highlight the complex dynamics affecting BJ’s Wholesale Club in the current market environment.

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