TJX Has An Attractive Mix Of Stability And Growth

Analysts at JP Morgan reiterate their "neutral" rating on TJX Companies TJX. The target price for TJX is set to $50. JP Morgan believes that multiple investors who are willing to pay for TJX “could be under pressure as EBIT margins (have) moved beyond 10%. However, the benefit that TJX has over rival ROST is that it has several small concepts and an international footprint that are both showing material improvement.” “When we look to the future, we still see bottom-line growth potential in the ~15% range, entirely driven by expansion at TJX’s smaller concepts…In addition, we believe that TJX’s strong cash flows and share buyback program will help support its 13% EPS growth rate target,” JP Morgan mentions. According to the analysts, “While the concept is clearly hitting maturity, we believe that productivity levels should continue to rise, shortening the gap relative to Ross Stores and keeping operating margins stable… Comps at the dept store level have now turned positive, which should act as a red flag that merch margin gains should, at the very least, slow going forward.” More Analyst Ratings here