BJ’s Wholesale downgraded to Hold after rally at Loop Capital

Loop Capital analyst Laura Champine downgraded BJ‘s Wholesale to Hold from Buy with a price target of $80, down from $85. The analyst is concerned the stock “may hit a wall” as investors see evidence of still-high inflationary pressures on the company’s core consumer. Gas sales “are a wild card,” and BJ’s faces tough comparisons on core same-store-sales in Q1, the analyst tells investors in a research note. The firm also sees risk to management’s expectation for a 20 basis point lift in merchandise margin as inflation stays firm on grocery categories. Loop cites the recent rally in the shares for the downgrade to Hold.