TJX Cos. (TJX) Reports Positive GM Results Despite FX and Increased Costs; Cowen Reiterates Outperform
Cowen reiterated an Outperform rating on The TJX Companies (NYSE: TJX), and cut the price target to $75.00 (from $85.00), following the company's 3Q earnings report. 3Q GM came in better than expectations, -38bps y/y vs. Cowen's -80bps estimate, with the decline driven by FX & increased supply chain costs due to an increase in units sold.
Analyst Oliver Chen commented, "TJX is a Powerhouse Retailer, Why? We like the strength of Global comp (Canada +10%, Europe +7%), and diversified outperformance w/Homegoods comp +6%. Mgmt's strategic price & merch. mix adjustments drove lower avg. ticket, allowing TJX to gain mkt share as consumers respond well to basics & lower-priced goods. Agile inventory management & buying muscle allows TJX to compete in a class alone."
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 $65.65 yesterday.