BJ's Wholesale Club (NYSE:BJ) shares have gained over 2% Thursday after TD Cowen started the stock at Outperform with a $80 per share price target.
TD Cowen analysts said investors can own a "young, agile & digitally equipped one-stop club shop" by investing in BJ's Wholesale Club.
"We like BJ's wholistic approach to club membership engagement, which incorporates digital analytics & a complete basket value proposition with strong appeal to a younger demographic," they explained.
The firm likes BJ's growth opportunity as the store base expands outside the Eastern U.S. from 238 units currently, growing by ten clubs per year.
"We see increased potential for strong membership lifetime value driven by BJ's one-stop shop assortment, competitive digital pickup options, and attractive reward perks," the analysts added.
TD Cowen model's high single-digit long-term EPS growth on low single-digit comps for BJ's.