Goldman Sachs Mantains Buy Rating On BJ's Wholesale Club

According to Goldman Sachs, BJ's Wholesale Club

Buy rating is maintained. Goldman Sachs said that the New York Post reported today that BJ's is looking for closer to $55 per share from a joint bid by Leonard Green & Partners and CVC Capital Partners, versus an earlier reported bid of $50 per share. “Our 12-month price target of $60 is unchanged and based on a 35% weighting of a theoretical M&A valuation of $61 (still based on 8X NTM EBITDA) and a 65% weighting of our EBITDA-derived, $59 valuation (7X 2012E, equal to BJ's average EV/EBITDA pre-recession and LBO speculation).” BJ's Wholesale Club closed yesterday at $47.27.