Evercore ISI analyst Greg Melich has maintained their neutral stance on BJ stock, giving a Hold rating on November 10.
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Greg Melich has given his Hold rating due to a combination of factors impacting BJ’s Wholesale Club Holdings. The company is anticipated to report modest price and wage investments to stabilize its market share and enhance inventory turnover, which has led to a reduction in earnings per share estimates for the coming years. Additionally, BJ’s is expected to report lower-than-expected comparable sales and earnings per share for the third quarter, with potential pressure on gross margins due to pricing strategies aimed at increasing member loyalty.
Furthermore, the departure of BJ’s Chief Merchant, Rachel Vegas, suggests potential challenges in the company’s core merchandising operations, which may affect its ability to maintain consistent sales growth. While there is potential for upside if BJ’s can achieve higher comparable sales and improve traffic and membership fee income, the current uncertainties and challenges have led to a cautious outlook, justifying the Hold rating.
According to TipRanks, Melich is a 4-star analyst with an average return of 10.3% and a 61.86% success rate. Melich covers the Consumer Cyclical sector, focusing on stocks such as Lowe’s, Floor & Decor Holdings, and AutoZone.
In another report released on November 10, J.P. Morgan also maintained a Hold rating on the stock with a $90.00 price target.