UPDATE: TJX Cos. (TJX) Trades Lower in Sympathy with Ross Stores (ROST); PT Cut at Sterne Agee

(Updated - July 16, 2014 12:57 PM EDT)

TJX Cos. (NYSE: TJX) traded lower Wednesday in sympathy with Ross Stores, Inc. (NASDAQ: ROST). Earlier Ross Stores was downgraded by analyst Ike Boruchow at Sterne Agee and its price target was cut o $68 from $81 (link). Boruchow also lowered his price target on TJX Cos. to $56 (from $65) while maintaining a Neutral rating. The report said growth was moderating as the domestic off-price channel matures.

"While the off-price model remains stable, channel growth is moderating due to maturation of the industry. Also, negative traffic trends may bring a need to reinvest margin (from peak levels) back into the business. We are lowering estimates and PT (lower Marmaxx comps and continued GM pressure), and we remain Neutral on the shares. Although TJX has a relatively stable business, we believe the valuation remains more than fair given there is lower visibility in the business today vs. years past," said Boruchow.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• RBC Capital Upgrades EDP Renovaveis SA (EDPR:LI) (EDRVF) to Outperform
• Jones Trading Starts Ellington (EFC) at Hold
• Dunelm Group PLC (DNLM:LN) PT Lowered to GBP11.40 at JPMorgan