Wells Fargo upgrades BJ’s Wholesale on ‘encouraging’ strategic shift

Wells Fargo upgraded BJ‘s Wholesale to Overweight from Equal Weight with a price target of $92, up from $75. The analyst cites the post-Q2 share pullback and the company’s “encouraging” strategic shift for the upgrade. Margin investment is the right strategic shift despite near-term pain, and supplements BJ’s “robust” member gains, the analyst tells investors in a research note. The firm says that while there may be some short-term noise from the election, the path to sustained fundamental progress appears in motion for BJ’s. The company’s’ comps are trending positively, and Wells expects the momentum to continue, the analyst says.