UPDATE: J.P. Morgan Reiterates Neutral Rating, Raises PT on The TJX Companies on Smaller Concepts Portfolio, International Footprint

In a report published Friday, J.P. Morgan analyst Brian J. Tunick reiterated a Neutral rating on The TJX Companies

, and raised the price target from $48.00 to $50.00. In the report, Tunick noted, “The benefit that TJX has over rival ROST is its portfolio of smaller concepts and international footprint. This is especially true as the TKMaxx and Canadian businesses have seemingly turned a corner and have seen comps and margins begin to improve. We believe TKMaxx represents a square footage growth vehicle and further margin expansion opportunity for TJX. Following 13 months in a row without a positive comp (execution issues and macro weakness) in FY10 and early FY11 the business is back on track (comps up 10% in FY12.) Inventory continues to be well-managed across the company, which leads us to believe that despite merch margins that are currently at record highs, further reductions in markdowns seem plausible. Traffic continues to grow, as does the availability of goods and the stability of the model should continue to act as a boon for investors.” The TJX Companies closed on Thursday at $48.74.