Jay Sole, an analyst from UBS, reiterated the Buy rating on TJX Companies. The associated price target was raised to $181.00.
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Jay Sole has given his Buy rating due to a combination of factors that highlight TJX Companies’ growth potential and market positioning. Sole views TJX as a company poised to capture significant market share from traditional department stores, with promising prospects in its newer ventures like HomeSense and Sierra Trading Post, as well as its international expansion plans, particularly in Spain. The analyst anticipates an approximate 11% compound annual growth rate in earnings per share over the next five years, which supports a price-to-earnings ratio of around 30 times.
Additionally, the recent Q3 earnings report bolsters this positive outlook, with TJX raising its earnings guidance and demonstrating strong sales growth, especially in its Marmaxx division. The company’s ability to manage inventory effectively amid market disruptions and its strong performance across various regions and income groups further reinforce the Buy rating. The raised price target of $181 reflects this confidence, aligning TJX’s valuation with industry peers and supported by both multiples and discounted cash flow analyses.
In another report released today, Citi also maintained a Buy rating on the stock with a $168.00 price target.