04:28 PM EDT, 03/11/2024 (MT Newswires) -- BJ's Wholesale Club (BJ) "set achievable guidance for the year ahead" after the company's fiscal Q4 results showed "underlying momentum" amid softer macro conditions, UBS said Monday in a report.

"While BJ's continues to use discounting as a tool to help spur some membership acquisitions, it's seeing success from its actions to engage new members and get them to renew at full price, assisted in part through its Easy Renewal program," UBS said.

"Even amid a soft grocery backdrop, we expect for it to take market share in consumables as members look to maximize value," UBS said.

"BJ's general merchandise momentum should continue as it laps very easy" comparisons from Q1 and Q3 and "benefits from assortment improvements," UBS said.

The bullish outlook suggests BJ's "traffic improvement, market share gains and its inflection in general merchandise show that it's increasingly resonating with its member base," UBS said.

UBS adjusted its price target on BJ's stock to $89 from $81, while maintaining the buy rating.

The shares rose 0.7% in after-hours trading. They fell 1.6% in the regular session.

Price: 74.75, Change: +0.48, Percent Change: +0.65