Morgan Stanley analyst Simeon Gutman has maintained their neutral stance on BJ stock, giving a Hold rating on November 21.
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Simeon Gutman has given his Hold rating due to a combination of factors influencing BJ’s Wholesale Club Holdings. While the company has shown strong performance in areas like membership fee income and digital sales penetration, there are concerns about the near-term impact of investments required to maintain competitive pricing. These investments are expected to dampen earnings revisions in the short term.
Furthermore, although BJ’s has a positive long-term strategy to enhance member engagement and boost its value proposition, the competitive intensity in the grocery and consumables market remains significant. This competitive pressure, along with modest deceleration in comparable sales momentum, suggests that the stock’s risk/reward profile is wide but positively skewed. Therefore, despite the potential for structural share gains in the club retail model, the ongoing investments to sustain competitiveness justify the Hold rating.
In another report released on November 21, Roth MKM also maintained a Hold rating on the stock with a $106.00 price target.
Based on the recent corporate insider activity of 55 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of BJ in relation to earlier this year.