DBS analyst Alison Fok has maintained their bullish stance on TJX stock, giving a Buy rating today.
Alison Fok’s rating is based on TJX Companies’ robust financial performance and strategic positioning in the market. The company reported a notable 6% year-over-year revenue growth and an 11% increase in diluted EPS for the third quarter of FY25, surpassing expectations. This strong financial showing is complemented by TJX’s commitment to returning value to shareholders, as evidenced by the USD2.9 billion returned through share repurchases and dividends in the first nine months of FY25, reflecting management’s confidence in the company’s growth potential.
Additionally, TJX is well-positioned to capitalize on current market conditions, benefiting from inflationary pressures that drive consumers towards value options. The company’s strong buyer and vendor relationships, coupled with disciplined inventory and cost management, enable it to offer quality branded merchandise at competitive prices. With plans to expand its store footprint by over 140 stores in 2024 and a focus on attracting younger, value-conscious customers, TJX is expected to maintain its growth trajectory. The Buy rating is further supported by an attractive target price of US$146.88, based on a favorable P/E multiple, reflecting the company’s optimistic outlook and strong cash flow trajectory.
Fok covers the Consumer Cyclical sector, focusing on stocks such as McDonald’s, TJX Companies, and Nike. According to TipRanks, Fok has an average return of 5.6% and a 58.95% success rate on recommended stocks.
In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a $136.00 price target.