Oppenheimer analyst Rupesh Parikh initiated coverage with a Hold rating on Bj’s Wholesale Club Holdings Inc (NYSE: BJ) today. The company’s shares opened today at $23.40.
Parikh wrote:
“We are initiating coverage of Perform rating. Under the leadership of CEO Chris Baldwin, we believe the company is much better positioned to sustain positive comp growth in an increasingly dynamic grocery backdrop. Management has aggressively invested in areas such as technology, procurement, merchandising, and membership acquisition, which appears to have already started to pay off and remains in the early stages. We see the potential for positive comp growth to persist, but at this point are less confident in the company’s ability to gain share which would warrant an even more premium valuation. We view the shares as fully valued as we discuss in more detail inside. COST, DG & SFM remain our top food retailing picks.”
According to TipRanks.com, Parikh is a 5-star analyst with an average return of 16.0% and a 62.3% success rate. Parikh covers the Services sector, focusing on stocks such as Blue Apron Holdings Inc, United Natural Foods, and Wal-Mart Stores Inc.
Bj’s Wholesale Club Holdings Inc has an analyst consensus of Moderate Buy, with a price target consensus of $29.83, a 27.5% upside from current levels. In a report issued on October 11, Morgan Stanley also maintained a Hold rating on the stock with a $30 price target.
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Based on Bj’s Wholesale Club Holdings Inc’s latest earnings release for the quarter ending July 31, the company reported a quarterly GAAP net loss of $5.61 million. In comparison, last year the company had a net profit of $19.71 million.
Based on the recent corporate insider activity of 29 insiders, corporate insider sentiment is negative on the stock.
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BJ’s Wholesale Club Holdings, Inc. engages in the operation of warehouse club. The company was founded on June 24, 2011 and is headquartered in Westborough, MA.
