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TJX stock earns Buy rating from TD Cowen as earnings and margins expand heading into FY26

EditorAhmed Abdulazez Abdulkadir
Published 12/06/2024, 12:22 AM
TJX
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On Thursday, TD Cowen showed confidence in The TJX Companies (NYSE:TJX), raising its price target to $138 from $132 while maintaining a Buy rating on the stock. The adjustment follows a visit to TJX's headquarters and store tour, which included meetings with top executives such as CEO & President Ernie Herrman and Senior EVP & CFO John Klinger.

During the visit, analysts had the opportunity to gain insights from Group Presidents for Marmaxx and HomeGoods, as well as the SVP of Global Communications and other investor relations personnel. The meetings left TD Cowen with a stronger positive outlook on TJX's ability to capture more market share, which is expected to contribute to sales growth and margin expansion. This confidence is supported by TJX's perfect Piotroski Score of 9 and robust revenue growth of 7.83% over the last twelve months.

The firm's assessment highlights TJX's unusual consistency in performance compared to the broader retail sector. This consistency is seen as a key factor that could support sustained double-digit earnings growth into the fiscal year 2026 and justify a mid-20s earnings multiple.

The new price target of $138 is based on approximately 26 times TD Cowen's fiscal year 2027 estimated earnings per share (EPS) of $5.23, which is higher than the consensus estimate of $5.10. The analyst's commentary underscores a belief in the company's continued financial growth and strong earnings potential in the coming years.

In other recent news,

The TJX Companies has seen a series of positive analyst outlooks following robust third-quarter results. Guggenheim maintained a positive view, raising the stock's price target from $135.00 to $140.00, citing the company's consistent performance and strategic focus. Similarly, Baird increased TJX's stock price target to $138 from $133, noting the company's recent market share gains and the appeal of their product assortments.

TD Cowen also exhibited confidence in TJX, increasing its price target on the stock to $132 from $130, based on the expectation that the company can effectively manage a shorter holiday shopping period. Evercore ISI echoed this sentiment, raising its price target to $142 from $138, while retaining an Outperform rating.

Jefferies reaffirmed its Buy rating for TJX with a price target of $140.00, following a strong third-quarter performance that surpassed consensus estimates and management's own guidance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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