TSX runs higher on rate cut expectations
Investing.com - Telsey Advisory Group raised its price target on The TJX Companies (NYSE:TJX) to $155.00 from $150.00 on Thursday, while maintaining an Outperform rating on the stock. According to InvestingPro data, TJX currently trades at $138.27, with analysts’ targets ranging from $88 to $164, reflecting a strong bullish consensus of 1.48 (Strong Buy).
The price target increase follows TJX’s quarterly earnings report that exceeded both company guidance and consensus estimates. Telsey noted the strong performance was driven by solid operational execution, healthy sales, and a lower-than-expected tariff impact. The company’s financial health score of GOOD on InvestingPro supports this assessment, with revenue reaching $57 billion and maintaining a healthy gross profit margin of 30.5%.
The off-price retailer continues to show resilience despite ongoing macroeconomic challenges, with Telsey highlighting that TJX’s value-focused proposition resonates with increasingly price-sensitive consumers. The favorable off-price buying landscape has enabled the company to effectively meet customer traffic and demand.
Telsey expects TJX to continue gaining profitable market share through steady comparable store sales growth and strategic new store openings. The research firm pointed to TJX’s raised annual outlook as an encouraging sign amid broader economic uncertainties.
The new $155 price target assumes a 19.0x multiple on Telsey’s two-year forward EBITDA estimate, which the firm notes is roughly in line with TJX’s recent next-twelve-months multiple of 19.3x. Based on InvestingPro analysis, the stock appears to be trading above its Fair Value, with current EV/EBITDA at 21.95x. For deeper insights into TJX’s valuation and 14+ additional ProTips, including dividend history and growth metrics, explore the comprehensive Pro Research Report available on InvestingPro.
In other recent news, The TJX Companies have seen several analysts raise their stock price targets following strong financial performance. Barclays (LON:BARC) increased its price target to $155, highlighting TJX’s quarterly earnings beat, with comparable sales growth of 4% and earnings per share of $1.10, surpassing the consensus estimate of $1.01. Similarly, Evercore ISI raised its target to $162, citing the company’s reliable share gains and consistent earnings delivery. BofA Securities also raised its target to $150, maintaining a Buy rating due to TJX’s better-than-expected sales and margins. Wells Fargo (NYSE:WFC) set a new target of $130, noting the company’s strong earnings report and 4% comp sales growth, above the expected 3.4%.
Jefferies increased its price target to $160, emphasizing the company’s potential to gain market share in the off-price sector. These developments reflect a consensus among analysts on TJX’s solid performance and growth prospects despite challenging economic conditions.
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