Market Overview

TJX Companies' Consistency, Quality Could Translate Into Top-Line Opportunity

TJX Companies' Consistency, Quality Could Translate Into Top-Line Opportunity

JPMorgan believes TJX Companies Inc (NYSE: TJX) enjoys quality and consistency. Therefore, the focus should be on translating them into opportunity. The comments came after an European road-show with the management. The firm did not see any reason to change its Overweight rating nor its price objective of $85, which still implies over 10 percent upside potential.

Analysts Matthew Boss and Anne Samuel cited the following three key factors as support for their investment thesis:

    1. A number of growth levers remain, specifically incremental unit growth in Home Goods.
    2. Procured values are lower by 20–60 percent than, Inc. (NASDAQ: AMZN) or D-Stores.
    3. Diversified vendor and International buying organization establishes high entry barriers.

In a research note, the brokerage viewed, "Near-term, we are raising our 3Q consolidated comp to +5 percent (> Street at +2.9 percent) with our global field work pointing to TJX as a positive outlier QTD (OffPrice > Dept Stores in 3Q) noting sequential acceleration in domestic top line trends (Marmaxx + Homegoods) driven by improved merchandise assortments (see pics herein) partially offset by sequential softness in Europe."

Related Link: This Chart Shows A Year's Worth Of Comps Across Retail

The analysts pointed out that the company's strength lays in its balance sheet with cash and short-term investments of about $2.2 billion. The lead analyst thinks that TJX could generate free cash flow of $1.5 billion and pointed out management's priorities in store expansion, dividend payment and repurchase of shares.

Therefore, the brokerage expects the retailer to make $1.5–$1.6 billion worth of share repurchase per year in the next three years. In the last two years, the company spent about $1.75 billion average to buy back its shares.

The stock traded up by $1.39, or 1.89 percent, to $75.13 at time of writing.

Full ratings data available on Benzinga Pro.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

Latest Ratings for AMZN

Nov 2020China RenaissanceUpgradesHoldBuy
Nov 2020CitigroupMaintainsBuy
Oct 2020BenchmarkMaintainsBuy

View More Analyst Ratings for AMZN
View the Latest Analyst Ratings


Related Articles (AMZN)

View Comments and Join the Discussion!

Posted-In: Analyst Color Long Ideas News Price Target Reiteration Analyst Ratings Movers Trading Ideas Best of Benzinga

Latest Ratings

HYMCBMO CapitalInitiates Coverage On
DEMorgan StanleyMaintains335.0
SBNYRaymond JamesMaintains138.0
CORTHC Wainwright & Co.Maintains32.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at