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Investing.com - Barclays (LON:BARC) raised its price target on The TJX Companies (NYSE:TJX) to $155.00 from $147.00 on Thursday, while maintaining an Overweight rating on the stock following the retailer’s quarterly earnings beat. According to InvestingPro data, seven analysts have recently revised their earnings estimates upward for the upcoming period, with price targets ranging from $88 to $164.
TJX reported comparable sales growth of 4%, exceeding consensus expectations of 3.1%, and delivered earnings per share of $1.10 versus the $1.01 consensus estimate. The company achieved these results despite facing negative impacts from tariffs during the quarter. The retailer’s revenue reached $57 billion in the last twelve months, with a healthy gross profit margin of 30.5%.
Barclays highlighted TJX’s "best-in-class off-price model" operated with "discipline and efficiency," noting that merchandise margins remained flat despite tariff pressures. The firm also mentioned a shift of expenses from the second quarter into the third quarter.
While TJX’s third-quarter guidance came in below consensus expectations, Barclays noted the company reported a strong start to the quarter. The firm expressed confidence in TJX’s inventory and operational positioning heading into the back-to-school and holiday seasons.
TJX shares closed 2.7% higher on August 20, outperforming the S&P 500’s 0.2% decline. Barclays cited several factors supporting its Overweight rating, including TJX’s exposure to higher household income brackets, pricing power, global growth potential, and proven track record as "best-of-breed in Off-Price."
In other recent news, The TJX Companies reported robust financial results for the second quarter of 2025, surpassing Wall Street expectations. The company achieved an earnings per share (EPS) of $1.1, exceeding the forecasted $1.01, and reported revenue of $14.4 billion, which was higher than the anticipated $14.14 billion. Following these results, several analyst firms adjusted their price targets for TJX. Evercore ISI raised its price target to $162 from $150, maintaining an Outperform rating, citing TJX’s reliable share gains and consistent earnings delivery. Jefferies also increased its price target to $160 from $155, maintaining a Buy rating, noting the company’s potential to benefit from growth in the off-price sector. Additionally, TD Cowen raised its price target to $151 from $145, maintaining a Buy rating, based on its above-consensus earnings per share estimate for fiscal year 2027. These developments reflect analysts’ confidence in TJX’s continued performance and market position.
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