BJ's Wholesale (BJ) PT Raised to $95 at DA Davidson

DA Davidson analyst Katy Hallberg raised the price target on BJ's Wholesale (NYSE: BJ) to $95.00 (from $92.00) while maintaining a Buy rating.

The analyst comments "BJ’s 1Q24 was about as expected, with a beat and acceleration a bright spot, and offsetting lower than expected per gallon profits in gas – which is largely out of BJ’s control, as well as some unfavorable weather which hurt seasonal sales. But, we believe trends should improve from here on both the comp and merchandise gross margin lines and gas profits are already trending better. Longer term, store growth is accelerating, as BJ continues to have success in new markets. This not only supports continued membership fee income growth, but also suggests that BJ can be a much larger company down the road versus today. We maintain our Buy rating and are increasing our price target to $95 from $92, supported by our discounted cash flow analysis. See our note from this morning for more details on BJ’s quarter press release. This note focuses on key takes from the call and our call back."

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