Wells Fargo Upgrades The TJX Companies (TJX) to Outperform; Continued Momentum

Wells Fargo upgraded The TJX Companies (NYSE: TJX) from Market Perform to Outperform with a price target range $48-51 from $42-45.

Analyst, Evren Kopelman, said, "We believe recent comp acceleration to high-single digits could continue driven by share gains from JCPenney (NYSE: JCP) (consensus estimates assume JCP sales decline $2B in 2012), traction with advertising, recovery in international comps, and faster inventory turns (resulting in fresher product). With macro pressures continuing in the U.S. and Europe, we think the consumer will continue to seek value in the off-price channel. Longer term, growth opportunities exist with stores (U.S. and international) and ecommerce."

"We are raising our 2012E/2013E EPS to $2.42/$2.75 from $2.40/2.70 and our valuation range to $48-51 (from $42-45) based on 17.5-18.5x our 2013E EPS, a higher multiple than historical averages given accelerating growth."

For an analyst ratings summary and ratings history on The TJX Companies click here. For more ratings news on The TJX Companies click here.

Shares of The TJX Companies closed at $43.11 yesterday.

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