11:50 AM EDT, 04/17/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We like BJ's unique go-to-market strategy in this environment, given its broader assortment of grocery and consumables products vs. club stores peers, along with a refreshed general merchandise offering. We see multiple expansion from a strong real estate pipeline, noting BJ's has just 244 clubs across about 20 states, while Costco U.S. and Sam's Club each have roughly 600 clubs across the country. We lift our 12-month target by $2 to $89, 22.1x our FY 25 (Jan.) EPS of $4.03 (up from $3.94; FY 26's up to $4.44 from $4.39). BJ is entering FY 25 with strong momentum, in our view, as it is now seeing positive volume/unit growth (conventional grocers are generally still seeing volume declines), along with positive comparable sales in general merchandise categories. We expect higher-tier membership penetration to increase (currently 38% vs. 46% for Costco) following the recent transition of its co-branded credit card with Capital One. We also see the potential for a membership fee hike over the next 12 months.