Off-price retailer TJX Companies (TJX) reported upbeat sales and earnings for the first quarter of fiscal 2020, which ended on May 4. TJX Companies also raised its EPS guidance for fiscal 2020. Several analysts raised their price targets for TJX Companies stock following its first-quarter results:
- Wells Fargo raised its target to $54 from $52.
- Cowen and Company raised its target to $63 from $62.
- Jefferies raised its target to $52 from $50.
- Credit Suisse raised its target to $56 from $55.
- MKM Partners raised its target to $62 from $61.
- Guggenheim raised its target to $60 from $57.
- Instinet raised its target to $57 from $55.
As of June 11, the average 12-month price target for TJX Companies stock was $58.05, implying a potential rise of ~11.5%. The year-to-date movement in TJX Companies stock was 16.4% on June 11 compared to the 15.1% increase in the S&P 500.
Consensus “buy” rating
On June 11, TJX Companies was assigned a “buy” rating by 19 out of 26 (73%) of the analysts following it. Six analysts had “hold” ratings, and one had a “sell” rating on the stock.
Most analysts have “buy” ratings on TJX Companies based on its consistent performance. Fiscal 2019 (which ended on February 2) marked the 23rd consecutive year of same-store sales growth for the company. Efficient inventory management, access to a strong network of over 21,000 vendors, and a low-cost business model are some of the factors that have helped TJX Companies withstand a competitive retail environment over the past several years.
TJX Companies opened 75 stores in the first quarter of fiscal 2020 and ended the quarter with 4,381 stores. The company plans to add ~230 net new stores (net of store closures) in fiscal 2020. TJX Companies sees an opportunity to operate over 6,100 stores in the long term in the US, Canada, Europe, and Australia.