TJX stock price target raised to $148 by JPMorgan on strong earnings

Investing.com - JPMorgan has raised its price target on The TJX Companies (NYSE:TJX) to $148.00 from $145.00 while maintaining an Overweight rating following the retailer’s strong second-quarter performance. With a market capitalization of $154.93 billion, TJX has emerged as a prominent player in the Specialty Retail industry. According to InvestingPro data, 7 analysts have recently revised their earnings estimates upward for the upcoming period.

TJX reported second-quarter earnings per share of $1.10, exceeding Wall Street expectations of $1.01, driven by same-store sales growth of 4% that surpassed the anticipated 3.4% increase. The company achieved pre-tax margin expansion of 50 basis points year-over-year to 11.4%, above the Street’s expectation of 10.9%. InvestingPro analysis indicates the stock is currently trading at a P/E ratio of 32.46, suggesting a premium valuation relative to its near-term earnings growth potential.

Gross margin expanded by 37 basis points year-over-year to 30.7%, outperforming estimates of 30.0%, with merchandise margins remaining flat despite higher tariff costs. The company also demonstrated SG&A leverage of 30 basis points year-over-year to 19.5% of sales, below the Street’s projection of 19.6%, attributed to operational efficiencies and timing of certain expenses.

Management has raised its fiscal year 2026 earnings per share guidance to $4.52-$4.57, up from the previous range of $4.34-$4.43 and above the Street’s expectation of $4.51. This improved outlook is based on projected same-store sales growth of 3%, higher than the prior guidance of 2-3%.

The company now forecasts pre-tax margins of 11.4%-11.5%, an increase from the previous guidance of 11.3-11.4%, reflecting both the second quarter’s above-plan results and a smaller negative impact from unfavorable foreign exchange rates than previously anticipated.

In other recent news, The TJX Companies reported quarterly earnings that surpassed both company guidance and consensus estimates, with earnings per share reaching $1.10 compared to the anticipated $1.01. The company also achieved comparable sales growth of 4%, exceeding the expected 3.1%. Following these strong results, several firms have adjusted their price targets for TJX. Telsey Advisory Group raised its target to $155, citing solid operational execution and healthy sales. Barclays (LON:BARC) also increased its target to $155, while Evercore ISI set a new target of $162, highlighting TJX’s consistent earnings performance. BofA Securities raised its target to $150, noting better-than-expected sales and margins. Wells Fargo (NYSE:WFC) adjusted its target to $130, emphasizing the company’s strong performance despite economic uncertainties. These developments reflect a positive outlook from analysts on TJX’s recent performance.

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