BJ's 3Q Better Than Expected

Citigroup has published a research report on BJ's Wholesale Club Inc. (NYSE: BJ) after the company reported 3Q results.

In the report, Citigroup writes "BJ's delivered better-than-expected 3Q10 EPS of $0.43/share, ahead of our $0.35 estimate as well as guidance of $0.37. Also, BJ's raised its 2010 EPS guidance to $2.48-$2.52, up from $2.40-$2.50, previously to reflect strong 3Q10 performance. Management believes that merchandise sales on a comparable club basis will continue to be pressured by the weak economy and a difficult competitive and promotional environment. BJ's expects to see gradual improvement in the economy over the course of next year. We reiterate our Hold (2H) rating for BJ based on limited upside from current levels. TGT is one of our top picks."

Citigroup maintains its Hold rating and $49 price target.

BJ's Wholesale Club closed yesterday at $45.81.