TJX Companies Gains Analyst Confidence With Consecutive Earnings Beats And Market Share Growth

Several analysts raised their price targets for The TJX Companies, Inc. TJX following yesterday’s strong second-quarter results.

TJX reported EPS of $0.96 (+13%) and $13.468 billion in sales, which exceeded estimates, driven by a 4% rise in comparable store sales.

The company raised its FY25 EPS outlook to $4.09-$4.13 and expects third-quarter EPS between $1.06 and $1.08, despite slightly missing estimates.

BofA Securities analyst Lorraine Hutchinson raised the price target to $135 from $115 while maintaining a Buy rating, reflecting an increased confidence in sales and profitability. The analyst writes that a strong quarter confirms its market share gains and consumer appeal.

Better buying and tailored merchandising strategies are enhancing markon and lowering markdown rates for TJX, adds the analyst.

Hutchinson anticipates these factors, combined with selective price increases, to boost merchandise margins. The analyst raised the FY25 EPS estimate by 1% to $4.12.

Apart from this, maintaining a Buy rating, UBS boosted the price target to $148 (from $134), Jefferies to $140 (from $130), TD Cowen to $125 (from $120), and Loop Capital to $140 (from $125).

Telsey Advisory Group analyst Dana Telsey increased the price target to $134 from $128 while reiterating the Outperform rating.

The analyst says that TJX’s consecutive earnings beats show that its value proposition resonates with consumers, supported by a favorable buying environment that meets increased traffic.

With a strong quarterly performance and raised FY24 guidance, TJX is set to continue gaining profitable market share through consistent comp gains and new store openings, including its 5,000th store, adds the analyst.

The analyst writes that the company is well-positioned this fiscal year to attract value-seeking consumers across all income brackets.

Telsey slightly raised the FY24 EPS estimate to $4.15 (from $4.13 earlier, compared to the previous consensus estimate of $4.13.

Moreover, reaffirming an Outperform rating, Evercore ISI Group increased the price target to $138 (from $126), BMO Capital to $133 (from $116), and Baird to $128 (from $113).

Investors can gain exposure to the stock via Segall Bryant & Hamill Trust Segall Bryant & Hamill Select Equity ETF USSE and VanEck Retail ETF RTH.

Price Action: TJX shares are down 0.53% at $119.59 at the last check Thursday.

Photo via Wikimedia Commons

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.