Analyst Alison Fok of DBS maintained a Buy rating on TJX Companies (TJX – Research Report), with a price target of $113.80.
Alison Fok’s Buy rating for TJX Companies Inc. is influenced by the company’s strong position as a leading off-price apparel and home fashions retailer, boasting a wide variety of products that cater to different consumer needs. The company’s ability to expand its product range, including high-end items like jewelry and designer clothes, enhances its appeal to a broad customer base. Furthermore, TJX has shown resilience by benefiting from the closure of other retail stores and a macro-economic environment that has created more bargain hunters, thereby increasing demand for its brands and allowing its merchants access to additional supplies.
Another contributing factor to the positive rating is TJX’s financial performance, where it has seen an improvement in its pre-tax profit margin, with expectations of continued margin enhancement due to lower freight costs. Additionally, the company’s appeal to the younger generations, particularly Gen Z and Millennials, is a promising indicator of both short-term and long-term growth. The younger demographic’s increased traffic and potential for future spending power suggest a sustainable and expanding customer base for TJX. Coupled with a strong cash flow trajectory and shareholder returns, these aspects provide a solid foundation for the Buy rating and a target price of US$113.8.
In another report released yesterday, Citi also maintained a Buy rating on the stock with a $110.00 price target.
TJX’s price has also changed slightly for the past six months – from $90.970 to $99.140, which is a 8.98% increase.
See today’s best-performing stocks on TipRanks >>
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
TJX Companies (TJX) Company Description:
The TJX Companies, Inc. is a leading off-price retailer of apparel and home fashion products. It operates T.J. Maxx and Marshalls (Marmaxx), HomeGoods, Sierra, and Homesense, as well as tjmaxx.com, marshalls.com, and sierra.com, in the U.S.; Winners, HomeSense, and Marshalls (TJX Canada) in Canada; and T.K. Maxx in the U.K., Ireland, Germany, Poland, Austria, the Netherlands, and Australia, as well as Homesense in the U.K. and Ireland, and tkmaxx.com in the U.K. (TJX International).
Read More on TJX:
