BJ’s Wholesale price target lowered to $73 from $80 at Credit Suisse

Credit Suisse analyst Karen Short lowered the firm’s price target on BJ‘s Wholesale to $73 from $80 and keeps a Neutral rating on the shares. Even as CPI moderates, the firm expects BJ’s strong value proposition in grocery to continue to resonate with customers in a challenging consumer backdrop. Beyond top-line strength in grocery, margins should benefit from the continuing roll-off of elevated ocean freight rates and diesel costs, while BJ’s club model and bulk pack sizes keep BJ relatively insulated from the shrink challenges that have plagued other retailers, Credit Suisse adds. That said, the firm notes several challenges BJ must navigate in Q2, including lapping elevated fuel prices, poor weather potentially hampering general merchandise sales, and increased competition/promotions in the club store space reported in recent survey work.