In a report released yesterday, Robert Drbul from Guggenheim maintained a Buy rating on TJX Companies (TJX). The company’s shares closed yesterday at $47.49.
Drbul said:
“We note 75% of the website is not offered in store (providing consumers reason to shop both/limiting cannibalization) and most online returns occur in stores. In Europe, e-commerce offers next-day click-and-collect (MSD% of sales). There are several cost pressures facing the business, including 1) freight and 2) wage. Addressing freight cost challenges is a top cost priority of the management team, with expectations of around a 2% headwind for next year. TJX expects headwinds related to driver shortage will continue. Freight is a particular challenge for HomeGoods given its product offering. On wages, TJX has managed labor costs on a market by market basis and is not cutting back on customer facing payroll in the face of this headwind (likely aiding comps). On tariffs, TJX remains in a wait-and-see mode.”
According to TipRanks.com, Drbul is a 5-star analyst with an average return of 11.2% and a 64.8% success rate. Drbul covers the Services sector, focusing on stocks such as National Vision Holdings Inc, Ascena Retail Group, and Wal-Mart Stores Inc.
TJX Companies has an analyst consensus of Moderate Buy, with a price target consensus of $55.54, representing a 17.0% upside. In a report issued on November 21, Nomura also maintained a Buy rating on the stock with a $55 price target.
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The company has a one-year high of $56.64 and a one-year low of $36.41. Currently, TJX Companies has an average volume of 5.07M.
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The TJX Cos., Inc. engages in the retail of off-price apparel and home fashion products. It operates through the following segments: Marmaxx, HomeGoods, TJX Canada, and TJX Europe.
