BJ's Wholesale Club Holdings (BJ) is positioned to return to its long-term growth trajectory by 2027, supported by healthy membership trends and stronger customer engagement, UBS Securities said Sunday in a report.

Early results from BJ's expansion into Texas have been stronger than expected, with membership signups running 33% ahead of plan and 100,000 members already enrolled in the state, UBS said. That performance may bolster confidence in BJ's ability to grow in competitive new markets, the report said.

UBS also pointed to improving general-merchandise sales, noting that category growth accelerated to 7.1% in fiscal Q1, and highlighted additional opportunities tied to tariff-related supplier recoveries, which it expects BJ's to reinvest in pricing to strengthen customer value.

UBS lowered its price target on BJ's stock to $109 from $117 and maintained its buy rating.

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