Goldman Sachs Raises PT On TJX To $56

Goldman Sachs is raising its price target from $55 to $56 on The TJX Companies TJX, keeping with raises in estimates following 1Q2011. Says Goldman Sachs, in its report, “1Q results were mired by AJ Wright conversions that reduced leverage, soft TJX Canada top-line trends due to inclement weather, and inventory clearing at TJX Europe that pressured gross margins. While these sources of frustration may keep the shares rangebound in the near-term, we believe management has appropriately set conservative guidance that could lead to a beat-and-raise scenario as trends normalize in the back half. Specifically, we see multiple avenues for upside, including: (1) increasing leverage following the conversion of AJ Wright stores mid-way through 2Q; (2) normalizing margins in TJX Europe now that inventory has been cleared and easier comparisons will be lapped; (3) rebounding top- line growth in TJX Canada as weather improves; and (4) sustained SSS at Marmaxx, which would prove management's 2-4% comp overly conservative.” Goldman Sachs remains Neutral on the stock. TJX closed yesterday at $52.06.