BJ’s Wholesale assumed with Neutral from Outperform at Credit Suisse

Credit Suisse analyst Karen Short downgraded BJ‘s Wholesale to Neutral from Outperform with a price target of $75, down from $80, after assuming coverage of the name. BJ’s membership trends have gained significant momentum since the beginning of the pandemic, but it could face tough gas profit per gallon comparisons in fiscal 2023, Short tells investors in a research note. The analyst expects discretionary spending to remain soft in 2023 given her view that consumers will continue to face pressure from elevated inflation and rising interest rates, as well as increasing risk of higher unemployment. BJ’s exposure to floating rates remains high at 100% of its total outstanding debt, adds Short.