TD Cowen initiated coverage of BJ‘s Wholesale with an Outperform rating and $80 price target. The analyst likes the company’s wholistic approach to club membership engagement and models high single-digit long-term earnings growth on low single-digit comps. The firm’ thesis includes an outlook for market share gains through digital differentiation, membership growth across a wealthier demographic, and gross margin expansion fuel by an assortment transformation. TD views the stock’s current multiple as attractive, highlighting the free cash flow yield of 4%. BJ’s also has $259M remaining in authorized share repurchases set to expire in January 2025, the analyst tells investors in a research note.
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Read More on BJ:
- BJ’s Wholesale initiated with an Outperform at TD Cowen
- BJ’s Wholesale names Anjana Harve as chief information officer
- BJ’s Wholesale target lowered, removed from ‘Underperform’ list at Evercore ISI
- BJ’s Wholesale price target lowered to $80 from $85 at Loop Capital
- BJ’s Wholesale price target lowered to $69 from $72 at Morgan Stanley