Citi Upgrades BJ’s Wholesale to Buy, Shares Rise 2%

BJ's Wholesale Club (NYSE:BJ) received a bullish upgrade from Citi analysts, who raised the stock from Neutral to Buy and increased the price target to $130, up from $115. As a result, the company’s shares rose more than 2% intra-day today.

Citi pointed to improved performance across key areas of BJ’s business, including better execution on membership growth, strong retail fundamentals, and a steady expansion of store units. The firm believes these enhancements have strengthened BJ's position as a leading warehouse club operator.

In a retail environment marked by macroeconomic uncertainty and renewed tariff concerns, Citi views BJ’s as offering a compelling defensive growth story. Its bulk-buying model and value-oriented proposition are seen as well-suited to attract price-sensitive consumers.

While shares are trading above historical valuation levels, the analysts argue that BJ's merits the premium given its current momentum and the attractive profile it presents for SMID-cap growth investors. With favorable tailwinds and strategic execution, Citi sees room for further upside in both earnings and valuation.