Goldman Adds BJ’s Wholesale To Conviction Buy, Lifts PT

Goldman Sachs put BJ’s Wholesale stock onto its Conviction Buy list and raised the price target to $50 (24.5% upside potential) from $49. Shares of the membership-only warehouse club chain operator are up about 1% in pre-market trading on Monday.

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On Sept. 21, Goldman analyst Kate McShane commented “BJ’s strong activity during the pandemic (new member acquisition) and recent strategic shifts (real estate are thesis changing events (in our view), [are] accelerating the earnings potential for BJ’s.”

Last month, BJ’s (BJ) reported better-than-expected 2Q earnings of $0.77, compared the Street estimates of $0.60. Its 2Q revenues of $3.95 billion beat analysts’ expectations of $3.73 billion.

BJ’s earnings and revenues increased 97.4% and 18.2%, respectively, on a year-over-year basis. Comparable club sales surged 24.2% during the quarter, benefiting from a surge in the demand for essential goods amid the pandemic. (See BJ stock analysis on TipRanks).

Currently, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 9 Buys, 5 Holds and 1 Sell. The average price target of $48.50 implies upside potential of about 20.8% to current levels. Shares have surged 76.6% year-to-date.