Don't Expect A Big Q2 Beat For TJX Companies, Atlantic Equities Says In Downgrade
TJX Companies Inc (NYSE: TJX) shares are up 24 percent year to-date, but now appear fairly valued, according to Atlantic Equities.
The Analyst
Analyst Daniela Nedialkova downgraded TJX from Overweight to Neutral with a $90 price target.
The Thesis
TJX has been on a solid trajectory, but momentum is priced into the stock, Nedialkova said in the Tuesday downgrade note.
The discount apparel retailer has decent sales momentum and has capitalized on fashion opportunities and consumer strength, but further outperformance looks difficult, the analyst said.
“We believe the stock is pricing in persisting momentum," Nedialkova said. "While this should prove to be the case, we also believe that in order to see significant further stock upside, TJX would need to deliver an even more strongly outperforming Q2."
TJX faces a tougher Q2 comparison this year, the analyst said, adding that she does not forecast a high likelihood of a meaningful beat.
TJX Companies is scheduled to report Q2 earnings Aug. 21.
Price Action
TJX shares were trading down 0.33 percent at $94.91 at the time of publication Tuesday afternoon.
Related Links:
Wedbush Sees Strong Trends Backing Discount Retail
Wells Fargo Calls A Peak In Discount Retail, Downgrades TJ Maxx's Parent Co.
Photo by Anthony92931/Wikimedia.
Latest Ratings for TJX
Jun 2018 | Atlantic Equities | Downgrades | Overweight | Neutral |
Jun 2018 | Credit Suisse | Maintains | Neutral | Neutral |
Jun 2018 | Wedbush | Initiates Coverage On | Neutral |
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