BofA Securities analyst Robert Ohmes reiterated a Buy rating and $115.00 price target on BJ's Wholesale (NYSE: BJ)

The analyst commented, "BJ reported F4Q26 adj. EPS of $0.96 ahead of Street $0.93 helped by slightly lower tax rate. Comp ex-gas was +2.6% led by perishables, grocery & sundries comp +2.3% driven by unit growth (despite lap of Fresh 2.0 rollout and some food deflation in the category) and general merchandise & services comp +4.3% as CE and apparel offset comp declines in home and seasonal (partly attributable to tighter inventory buys). Digital comp was +31% y/y in F4Q. Merchandise margin (ex-gas) declined 50bps y/y with the largest drag being mix pressure (CE performance, lower margin, within gen merch). The net impact of winter storms was a slight positive to 4Q and a drag to February comp. Lower F27E EPS, see 1Q comp as low point of year We lower our F27/C26E adj. EPS estimate to $4.50 (was $4.65, and in-line with guidance of $4.40-4.60). Comp guidance +2-3% assumes ~1pt of inflation and 1Q comp as the low point. MFI growth is expected to moderate from +9.5% y/y in 2025 as BJ laps membership fee increase in Jan. 2025. While BJ did not guide to merchandise gross margin, we see some potential pressure given commodity volatility and potential price investments as BJ remains focused on value for members."

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Shares of BJ's Wholesale closed at $99.98 yesterday.