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Wells Fargo downgrades BJ’s Wholesale to Equal Weight, lowers target to $70

As previously reported, Wells Fargo downgraded BJ‘s Wholesale to Equal Weight from Overweight with a price target of $70, down from $73. The firm continues to like the fundamental story of BJ’s, but the stock has a tough path ahead for 2019 in its view. Wells’ concerns include high exposure to food price deflation given its grocery mix, too much of the 2024 story hinging on improved momentum in underlying grocery share and general merchandise, potential for some margin downside as competitive pressures intensify, and modest earnings risk.

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