BTIG initiates BJ’s Wholesale stock with Buy rating on defensive growth

Investing.com - BTIG initiated coverage on BJ’s Wholesale (NYSE:BJ) Tuesday with a Buy rating and a $120.00 price target. The wholesale club operator, with a market capitalization of $12.38 billion and annual revenue exceeding $20.9 billion, is currently trading near its InvestingPro Fair Value.

The research firm established fiscal year 2025 earnings per share estimates of $4.30 and fiscal year 2026 estimates of $4.60 for the wholesale club operator.

BTIG described BJ’s stock as "attractively priced" at 21.7 times its fiscal year 2026 earnings per share estimate.

The firm characterized BJ’s business model as "defensive in nature," highlighting its resilience during various economic conditions.

BTIG noted that BJ’s has a "clear road map" for mid-single-digit percentage revenue growth and earnings per share growth in the high-single-digit to low-double-digit percentage range.

In other recent news, BJ’s Wholesale Club Holdings Inc reported its second-quarter earnings, surpassing expectations and subsequently raising its full-year guidance. The company experienced a 2.3% increase in comparable sales, excluding gasoline, attributed to traffic growth and market share gains. Despite these positive results, several analyst firms have adjusted their price targets for BJ’s Wholesale. Evercore ISI lowered its price target to $110, maintaining an "In Line" rating, while TD Cowen reduced its target to $115 due to weather-related challenges. UBS also decreased its target to $125, citing macroeconomic concerns, but maintained a Buy rating, noting improvements in BJ’s Fresh 2.0 initiative and strong membership dynamics. DA Davidson lowered its target to $123, acknowledging a miss in comparable sales estimates but highlighting better-than-expected profit and earnings per share. Goldman Sachs, maintaining a Buy rating, noted performance improvements as weather conditions normalized. These developments reflect a mixed outlook from analysts, focusing on both challenges and strategic initiatives.

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