Stifel Cuts Price Target on TJX Cos. (TJX) to $86 Following 3Q
Stifel maintained a Buy rating on The TJX Companies (NYSE: TJX), and cut the price target to $86.00 (from $92.00), following the company's 3Q earnings report. TJ Maxx reported adjusted 3Q EPS of $0.91, $0.04 above consensus estimates. The beat was driven by stronger sales and better than expected gross margin expansion. However, Stifel believes that the wage increases and investments in growth headwinds will begin to moderate in 2018 and FX could become a tailwind.
Analyst Richard Jaffe commented, "Near-Term EPS will continue to be pressured by three factors: wage growth (3% neg impact to EPS growth), FX (low single digit neg. impact to EPS growth) and ongoing investments to support growth. These factors will likely limit 2016 and 2017 EPS growth to mid to high single digits in our opinion, below management’s LT guidance of a low double digit increase."
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Shares of The TJX Companies closed at $74.22 yesterday.