At least two Wall Street firms see good times ahead for TJX Cos. shares, despite a choppy stock market reaction to the Marshalls and T.J. Maxx parent’s latest earnings Wednesday. Both Bernstein and Bank of America reiterated overweight and buy ratings, respectively, on TJX in reports out Thursday. The two also raised their 12-month price targets to $175, implying the retailer’s shares can climb about another 12% from Thursday’s close. TJX in its fiscal fourth-quarter earnings report delivered an earnings and revenue beat, but gave weaker-than-expected current quarter and full-year guidance, sending shares lower for a third straight day. Bernstein analyst Aneesha Sherman said management remarks TJX’s quarter-to-date performance was solid even as formal numbers fell short. CEO Ernie Herman said the company’s off to a strong start. Sherman, though, believes TJX’s valuation — a forward multiple of 30 — has room to move higher, especially compared to competitors such as Ross Stores and Burlington Stores . At a time when fears that artificial intelligence will disrupt business is roiling investor calculations, the analyst sees TJX as an “AI-proof retail compounder” “It is also one of the new relatively ‘AI-proof’ names, with an offline, highly experiential shopping model that lures people in for a ‘treasure hunt’ that is hard to disintermediate online,” Sherman wrote. While Bank of America lowered full-year 2026 and 2027 earnings per share estimates due to higher non-production operating costs, analyst Lorraine Hutchinson said her numbers are conservative and she expects improvement through the year. With tariff uncertainty continuing in the wake of the Supreme Court decision last week to overturn President Trump’s levies under 1977 legislation, Bank of America sees TJX continuing to outperform regardless of the trade environment. “By allowing TJX to take price, tariffs have benefited margins as selling fewer units for every dollar of sales growth allows for increased leverage due to the lower costs to ship, distribute, house and sell these items,” Hutchinson wrote. TJX shares outperformed a down market Tuesday, rising as much as 2.2%. TJX 1Y mountain TJX 1-year chart.
Wall Street loves this 'AI-proof retail compounder'
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