BJ's Wholesale Club Holdings: Reinstating at Neutral; Good business at a fair price

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BJ's Wholesale Club Holdings: Reinstating at Neutral; Good business at a fair price

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BJ's Wholesale Club Holdings

Reinstating at Neutral; Good business at a

fair price

Reinstating Coverage: NEUTRAL | PO: 110.00 USD | Price: 97.66 USD

Need more visibility on comp inflection to become bullish 20 May 2026

We are reinstating coverage of BJ with a Neutral rating. The warehouse club model (gas Equity

and bulk product discounts) has the potential to shine if oil prices remain higher for

longer. That said, for BJ to breakout we think the market needs to see evidence of comp Christopher Nardone Research Analyst

consistency and improvement. On a <3% comp ex gas, given the company’s supply chain BofAS

investments and store growth, upward estimates revisions are unlikely and balance the +1christopher.nardone@bofa.com646 743 2016

risk/reward with shares trading 21x P/E. We model 2.5% comp ex gas from F26-F28e. Madeline Cech

What we like: membership model, value offering ResearchBofAS Analyst

The current environment of higher gas prices should bode well for new membership +1 646 855 5219 madeline.cech@bofa.com

acquisition as consumers gravitate toward value. Looking back at the gas spike in 2022,

BJ saw traffic gains, strong membership fee growth, and trade down benefits (see

Exhibit 4). In ’22, the business also benefited from significant food inflation which may

not repeat this time around. Net/net higher for longer gas prices could drive potential Stock Data

upside to our F26 comp ex gas forecast of 2.5% but the lack of visibility on the longevity Price 97.66 USD

of the War makes it harder to underwrite the benefits from higher gas prices. Price Objective 110.00 USD

Date Established 20-May-2026Needs to be proven: TX expansion, comp acceleration