TJX Companies: Strong Position and Upside Potential Amid Tariff Concerns and Economic Downturns

Morgan Stanley analyst Alexandra Straton has maintained their bullish stance on TJX stock, giving a Buy rating today.

Alexandra Straton’s rating is based on a combination of factors that highlight the strengths of TJX Companies. Despite some volatility in key performance indicators during the first quarter, management effectively addressed these concerns, and the overall quarter was strong, especially when considering the initial fears regarding China tariffs. Straton sees potential for upside in the full-year earnings per share guidance, supported by TJX’s relative insulation from tariffs expected in 2025, its favorable position during economic downturns, and its structurally higher margin profile compared to historical figures.
Moreover, TJX benefits from its first-mover advantage internationally in the off-price retail segment and remains one of the few high-quality, large-cap investment options in the softlines retail sector. The company’s ability to deliver a typical first-quarter earnings per share beat, driven by sales and SG&A upside, further reinforces its strong position. Although there was some underperformance in Marmaxx and gross margin, the reiterated full-year guidance and attractive value positioning contribute to Straton’s Buy rating, with a revised price target of $140.

In another report released today, Barclays also maintained a Buy rating on the stock with a $147.00 price target.

Based on the recent corporate insider activity of 50 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of TJX in relation to earlier this year.