Loop Capital lifts TJX stock target to $150, maintains Buy rating

On Thursday, Loop Capital Markets adjusted their financial outlook for The TJX Companies, Inc. (NYSE:TJX), increasing the price target to $150 from the previous $140 while sustaining a Buy rating on the stock. Following the release of TJX’s first-quarter earnings, which included a modest outperformance, the firm’s analysts made this decision. The company, currently trading near its 52-week high of $135.85, has shown strong momentum with a 31.25% return over the past year. According to InvestingPro data, five analysts have recently revised their earnings estimates upward for the upcoming period, suggesting growing confidence in TJX’s prospects.

TJX reported same-store sales (SSS) growth of 3%, aligning with both Loop Capital’s and the consensus estimates. The MarMaxx segment experienced a 2% increase in comparable sales, slightly below the projected 3%. However, this was counterbalanced by stronger-than-expected performance from TJX’s international segments and HomeGoods (HG). Notably, Canada and TK Maxx both outperformed expectations with a 5% rise in comparable sales against an estimated 3%, while HomeGoods achieved a 4% increase, surpassing the 3% forecast. With total revenue reaching $56.36 billion and maintaining healthy margins, TJX continues to demonstrate its position as a prominent player in the Specialty Retail industry. Want deeper insights? InvestingPro offers comprehensive analysis with 14+ additional ProTips and detailed financial metrics.

The analysts noted that TJX’s profit margins are anticipated to be affected in the second quarter due to tariffs on products they were already committed to on Liberation Day. Consequently, the earnings per share (EPS) forecast for the quarter has been adjusted, with a predicted nine-cent impact. Despite this, the full-year EPS estimate for fiscal 2025, ending January 26, has been trimmed by just four cents, factoring in the five-cent beat from the first quarter.

Loop Capital is projecting a 3% increase in overall same-store sales for both the second quarter and the full year, which is at the upper end of TJX’s guidance. The analysts believe that their thesis on market share gains is unfolding as anticipated, forecasting a 4% annual sales growth for TJX in a market projected to grow at half that rate.

In other recent news, The TJX Companies reported its first-quarter 2025 financial results, showcasing an earnings per share (EPS) of $0.92, slightly surpassing the forecast of $0.91. The company also reported revenue of $13.1 billion, exceeding the forecast by $100 million. Despite these positive numbers, TJX’s stock experienced a 2.65% decline in pre-market trading, attributed to investor concerns over margin compression and increased inventory levels. UBS analyst Jay Sole raised the price target for TJX to $164, maintaining a Buy rating, citing the company’s potential for market share expansion and a projected five-year EPS growth rate of 10.5%. Meanwhile, JPMorgan analyst Matthew Boss reaffirmed an Overweight rating with a $130 price target, noting TJX’s strong same-store sales growth of 3%. Looking ahead, TJX management reiterated its full-year guidance, expecting a 2-3% increase in comparable sales and an EPS range of $4.34 to $4.43, despite ongoing tariff pressures. The company remains optimistic about its ability to navigate the current economic environment, with strong performance in its HomeGoods division and plans to introduce its TK Maxx banner in Spain by 2026.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.