Stifel Keeps TJX Cos. (TJX) at 'Buy' Following Solid Q1 Results, Boosted Outlook
Stifel affirms TJX Cos. (NYSE: TJX) with a Buy rating and $85 price target after the company posted Q1 results and updated outlook earlier Tuesday.
Analyst Richard Jaffe commented, TJ Maxx reported 1Q EPS of $0.76 ($0.05 above consensus and our estimate) a 10% increase vs. $0.69 LY. The beat vs.
our estimate was driven by better than expected sales and gross margin expansion.
Jaffe also commented on TJX's outlook, CEO Herrman stated that the 2Q is off to a solid start. We believe that the company is in a good inventory position to capitalize on the plethora of buying opportunities in the market, which bodes well for 2Q results. We remain favorable regarding TJX’s long-term outlook and ability to grow its business both domestically and internationally. This is based on the company’s flexible business model which allows TJX to flow the right merchandise in the right categories at the right time, driving strong sales and merchandise margins. We believe this highlights the ongoing resilience and competitive strength of the off-price business model and the strength of TJX as the largest and dominant player in the off-price market.
Jaffe concluded, We believe recent results and ongoing initiatives have improved the visibility of earnings growth.
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