Nomura Securities Maintains a 'Buy' on The TJX Companies (TJX); 3Q Review

Nomura Securities maintains a 'Buy' on The TJX Companies (NYSE: TJX) price target raised from $60 to $64.

Nomura analyst, Paul Lejuez, said, "3Q incremental info and updated thoughts. Although the quarter held few surprises, the strong start to November (comps expected to be +3-5%) represents a meaningful improvement in trend (comps +3% in 3Q). Take-aways: 1) Although TK Maxx is improving, the division did not meet management’s 3Q profit expectations, 2) Expect total inventory per store (incl DC) to be +low- to mid-single digits by year-end, 3) Merch margin flat overall in 3Q with similar trends in 4Q, 4) Will run TV ads for HomeGoods for the first time in 4Q. While it is early in the holiday season, we expect TJX to perform well relative to other softlines retailers. We are increasing our TP to $64 based on 14x FY12E, the same multiple for Rost Stores (Nasdaq: ROSS). Our FY11E and FY12E EPS remain unchanged."

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 $60.87 yesterday.

---

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

---

You May Also Be Interested In

• Bullish (BLSH) PT Lowered to $45 at Canaccord
• DA Davidson Upgrades Duolingo Inc. (DUOL) to Buy
• Truist Securities Assumes Corcept Therapeutics (CORT) at Buy