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Positive Outlook for TJX: Buy Rating Supported by Reduced China Tariffs, Strong Off-Price Environment, and Robust Margins

John Kernan, an analyst from TD Cowen, maintained the Buy rating on TJX Companies (TJXResearch Report). The associated price target was raised to $142.00.

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John Kernan has given his Buy rating due to a combination of factors including the reduction in China tariff rates, which alleviates pressure on TJX’s vendor exposure to China. The anticipated strong Off-Price buying environment in the second half of 2025, coupled with effective merchandising strategies at MarMaxx, suggests potential upside in same-store sales. Kernan’s analysis indicates that TJX’s ability to offer strong value to consumers, along with a diverse product range and robust US gross margins, positions the company well amidst economic uncertainties.
Additionally, Kernan notes management’s increased confidence in inventory availability and the potential for improved buying conditions post-Liberation Day. The raised fiscal year 2025 pre-tax margin guidance and the potential for higher earnings per share guidance further support the positive outlook. Kernan’s valuation approach, which includes a raised price target based on discounted cash flow analysis, reflects confidence in TJX’s future performance, leading to the Buy rating.

According to TipRanks, Kernan is a 5-star analyst with an average return of 10.4% and a 56.51% success rate. Kernan covers the Consumer Cyclical sector, focusing on stocks such as TJX Companies, On Holding AG, and Columbia Sportswear.

In another report released yesterday, J.P. Morgan also maintained a Buy rating on the stock with a $130.00 price target.

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