JPMorgan Lifts TJX Companies Price Target by $19 to $173
JPMorgan raised its price target on TJX to $173 from $154 and maintained an Overweight rating. The firm highlighted 12% growth in diluted EPS to $1.28, a 100 bp gross margin improvement and 5% comparable sales growth in Q3, driven by higher basket sizes and operating efficiencies.
1. Analyst Rating and Price Target
On February 23, JPMorgan lifted its price target on The TJX Companies to $173 from $154 and reaffirmed an Overweight rating, reflecting confidence in off-price retail resilience and margin expansion.
2. Q3 Financial Performance
In fiscal Q3, diluted EPS rose 12% to $1.28, gross margin expanded by 100 basis points and pre-tax profit margin reached 12.7% as comparable sales grew 5% thanks to larger basket sizes and increased transactions.
3. Segment Highlights
The Marmaxx division saw 6% comparable sales growth and a 14.9% profit margin, HomeGoods delivered 5% comparable sales growth with a 13.5% margin, while Canada and International operations reported 8% and 3% comparable sales increases respectively.
4. Outlook and Capital Returns
Management projects Q4 comparable sales of 2%–3% and EPS of $1.33–$1.36, raised full-year sales guidance to $59.7 billion–$59.9 billion with a projected 11.6% pre-tax margin, and returned $1.1 billion to shareholders through dividends and share repurchases.