Sterne Agee reported on Monday that it has began coverage of discount retailer, The TJX Companies, Inc.(TJX).
The firm has initiated coverage on TJX with a “Buy” rating and $50 price target. This price target suggests a 9% increase from the stock’s current price of $45.27.
An analyst from the firm commented, “while we acknowledge that macro pressures are currently impacting top-line results (at the same time margins are peaking and compares get tough), we still feel that the group is set up favorably from here, as: 1) the group has underperformed YTD (+2% vs. SPX +5%) and multiples have come down, 2) Street estimates have been reset lower (while most stocks are going up on bad news) as managements lay out conservative initial plans for 2013, 3) inventories are in solid shape, 4) this is seasonally the best time to own retail stocks (Mar/Apr best months historically) and 5) near-term weakness could potentially snap as refund checks hit the consumer’s wallet and the weather potentially turns warmer (driving pent-up demand).”
TJX shares were up 30 cents, or 0.67% during Monday morning trading. The stock has increased 22% in the past year.
The Bottom Line
Shares of The TJX Companies, Inc.(TJX) have a 1.28% yield, based on Monday morning’s price of $45.16.
The TJX Companies, Inc.(TJX) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
FREE Dividend Stock Newsletter
Get the Dividend.com email newsletter to receive:
- A free copy of our acclaimed report, 5 Rules of Winning Dividend Stock Investing
- Free daily investing tips and picks from Dividend.com CEO Paul Rubillo
- Tons of great market analysis and recommendations