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On Thursday, BMO Capital Markets updated their outlook on The TJX Companies (NYSE:TJX) shares, raising the price target to $145 from the previous $133 while reiterating an Outperform rating on the stock. The retail giant, currently trading near its 52-week high of $128 with a market capitalization of $140.4 billion, reported a top and bottom-line beat in its fourth-quarter earnings. According to InvestingPro analysis, TJX is currently trading above its Fair Value.
The TJX Companies, known for its off-price retail offerings, saw all of its business segments perform better than anticipated, which was particularly reflected in their comparable store sales. The company achieved impressive annual revenue of $56.36 billion with a healthy gross margin of 30.6%. This quarter marked another period where increased foot traffic played a significant role in driving comparable store sales.
Despite the positive performance, TJX management has conservatively set its guidance for the first quarter and the full year below expectations. They cited unfavorable weather conditions at the beginning of the first quarter but noted an improvement as the weather normalized. Management remains optimistic, emphasizing the availability of attractive merchandise and the potential for increased long-term store targets.
BMO Capital’s analyst expressed continued support for TJX, viewing the company as a compounder, which is expected to grow in relevance for consumers and brands alike over the coming years. The new price target is based on approximately 28 times the fiscal year 2026 estimated earnings per share (EPS).
In other recent news, TJX Companies Inc. reported its fourth-quarter 2025 earnings, surpassing analyst expectations with an earnings per share (EPS) of $1.23, compared to the forecasted $1.16. The company also reported revenue of $16.35 billion, exceeding the anticipated $16.19 billion. This reflects a 5% year-over-year increase in revenue and a 10% rise in EPS. The strong performance was driven by increased customer transactions and growth in key categories such as apparel and home.
For fiscal 2026, TJX plans to open 130 new stores and remodel 500 existing locations, projecting consolidated sales between $58.1 billion and $58.6 billion. The company expects EPS for the year to range from $4.34 to $4.43. Additionally, analysts have noted the company’s robust market position across all divisions, particularly in international markets such as Canada and Europe, which saw significant sales growth. These recent developments indicate TJX’s continued focus on expanding its market presence and enhancing customer experience.
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