CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We cut our 12-month target to $92 from $103, based on about 20x our FY 27 (Jan.) EPS estimate of $4.57 (raised from $4.48; FY 28 raised to $4.98 from $4.90). While this multiple remains above the company's long-term average of 19x, it is still well below those of large-format peers. We maintain our Hold rating following a mixed Apr-Q result, as BJ's comparable sales growth continues to lag its largest competitors. We expect limited upside to earnings revisions given ongoing reinvestment in areas such as pricing. We also see incremental near-term headwinds emerging, including higher transportation costs as a result of the recent spike in fuel prices. Longer term, however, we remain more constructive as recently opened clubs continue to mature, with clubs typically reaching maturity within five years of opening (clubs opened within the last five years are growing at over 4x the chain average). BJ's expansion into Texas also appears encouraging, with early indicators for sales and membership trends tracking positively.