Analyst Paul Lejuez from Citi maintained a Hold rating on TJX Companies (TJX – Research Report) and keeping the price target at $128.00.
Paul Lejuez has given his Hold rating due to a combination of factors related to TJX Companies’ current market position and valuation. The company has shown strong performance in the fourth quarter and has been gaining market share across various demographics in the US, benefiting from store closures in the retail sector. Additionally, TJX’s off-price shopping model is appealing to younger consumers, and the company is well-positioned for future growth, particularly with potential opportunities arising from market dislocations due to tariffs.
However, despite these positive aspects, the valuation of TJX stock is a concern. The stock trades at a higher multiple compared to its peers, such as Ross Stores and Burlington, which makes the risk/reward profile more balanced rather than compelling. Furthermore, while management is confident in their guidance and expansion plans, there are pressures such as margin impacts and external factors like weather that could affect short-term performance. These elements contribute to the decision to maintain a Hold rating, reflecting a cautious approach given the current valuation levels.
In another report released yesterday, Wells Fargo also maintained a Hold rating on the stock with a $125.00 price target.
Based on the recent corporate insider activity of 55 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of TJX in relation to earlier this year.