UBS Lowers BJ's Wholesale Club Price Target to $125

UBS analyst Mark Carden has lowered the price target for BJ's Wholesale Club (BJ) to $125 USD, a 7.41% decrease from the previous target of $135 USD. This adjustment reflects a change in market conditions and company performance. BJ's Wholesale serves as one of the few warehouse club chains in the US, with 250 warehouses primarily located along the East Coast. The company charges annual membership fees and keeps costs down by operating a "no-frills" store environment.

UBS analyst Mark Carden has revised the price target for BJ's Wholesale Club (BJ) to $125 USD, a 7.41% decrease from the previous target of $135 USD. This adjustment reflects a change in market conditions and company performance. BJ's Wholesale serves as one of the few warehouse club chains in the US, with 250 warehouses primarily located along the East Coast. The company charges annual membership fees and keeps costs down by operating a "no-frills" store environment.

The latest earnings report for BJ's Wholesale Club, covering the thirteen weeks ended August 2, 2025, showed adjusted earnings per share (Non-GAAP) of $1.14, surpassing non-GAAP estimates and representing a 4.6% year-over-year increase [2]. Total revenue (GAAP) grew 3.4% to $5.38 billion, but came in slightly below consensus estimates. Membership fee income jumped 9.0% to $123 million, reflecting gains from a fee increase and more members. Comparable club sales, excluding gasoline, rose 2.3%, while digitally enabled sales grew 34% year-over-year.

The company's performance was mixed, with steady improvements in key areas such as membership and digital sales, but softer top-line performance due to fuel price trends and rising operating costs. Management raised full-year adjusted EPS guidance to $4.20–$4.35, reflecting continued confidence in the company's ability to navigate these challenges.

The reduction in the price target by UBS Group suggests a more cautious outlook on the company's future prospects, possibly due to the current market conditions and the impact of rising operating costs on the company's profitability. Investors should closely monitor BJ's Wholesale Club's ability to adapt to these challenges and maintain its competitive edge in the warehouse club market.

References:
[1] https://www.marketbeat.com/instant-alerts/ssc-technologies-nasdaqssnc-given-new-11000-price-target-at-ubs-group-2025-08-22/
[2] https://www.nasdaq.com/articles/bjs-posts-46-eps-gain-fiscal-q2