TJX stock rating reiterated at Buy by UBS on market share potential

Investing.com - UBS has reiterated its Buy rating and $164.00 price target on The TJX Companies (NYSE:TJX), citing potential market share gains from department stores in coming years. The target represents a 31% upside from the current price of $125.40, with InvestingPro data showing the stock has delivered a solid 14% return over the past year.

UBS analyst Jay Sole highlighted several growth drivers for TJX, including newer business segments HomeSense and Sierra Trading Post, which the firm believes have significant potential for expansion.

The firm also noted TJX’s international operations as another avenue for growth, contributing to UBS’s forecast of approximately 11% five-year earnings per share compound annual growth rate.

UBS believes this growth outlook justifies a price-to-earnings multiple of 28x for TJX stock, suggesting further upside potential despite what the firm describes as already bullish investor sentiment.

The analyst also pointed out that potential U.S. tariff situations could create inventory dislocations across the retail landscape in 2026, which would likely benefit TJX’s off-price business model.

In other recent news, The TJX Companies reported a robust first-quarter performance, with a 3% increase in comparable store sales, reaching the upper end of its projected range. BofA Securities analysts noted that TJX is effectively capitalizing on consumers’ demand for value, enhancing market share by offering branded products at competitive prices. The company has maintained its full-year margin outlook and adjusted its earnings per share estimates upwards for fiscal years 2026 and 2027. Meanwhile, shareholders approved board nominees and the appointment of PricewaterhouseCoopers as the independent auditor for fiscal 2026. TD Cowen raised its price target for TJX to $145, citing a widening value gap against competitors and potential advantages from Vietnam tariffs. Bernstein reiterated an outperform rating, highlighting TJX’s strong buying organization and its strategic approach to supply availability. Evercore ISI also maintained an Outperform rating, emphasizing TJX’s inventory management and new store formats in international markets. Overall, analysts from TD Cowen, Bernstein, Evercore ISI, and BofA Securities expressed confidence in TJX’s strategic direction and earnings potential.

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