Evercore starts BJ’s at In-Line with fee hike unlikely until 2024

Evercore ISI analyst Greg Melich initiated coverage of BJ‘s Wholesale Club with an In Line rating and $70 price target. BJ’s loyalty based model "provides investors a tempting staplesque option into a decelerating retail backdrop," Melich tells investors in a research note. The analyst says that while he’d like to own BJ’s longer-term, a fee hike to accelerate membership fee income is unlikely until 2024. In the meantime, he thinks the 18-times multiple is more likely to drop to 16-times than hit 20-times.