TJX Companies upgraded to ‘Buy’ at Gordon Haskett on positive channel checks
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Gordon Haskett analyst Chuck Grom raised his rating on TJX Companies (NYSE:TJX) from âHoldâ to âBuyâ due to positive dynamics he sees for off-price retail.

âOur recent store manager survey results point to an improved picture at both TJX and [Ross Stores] (NASDAQ:ROST) with a higher percentage of stores tracking âOn Planâ or âAbove Planâ with both companies indicating that product assortment/availability has improved,â he told clients on Thursday. âOverall, TJX likely edges out ROST for a more favorable store manager survey with more stores tracking âAbove/On Planâ for sales/traffic, and less promotional activity indicated.â

He added that the home category is a top performer and has showed far less demand deterioration than other discretionary categories. Grom also voiced his belief that staffing issues across the retail space should abate into 2023, adding another tailwind for the off-price group overall.

Grom upgraded TJX Companies from Hold to Buy while raising his price target to $80 from a prior $60. Meanwhile, Hold ratings were reiterated on both Ross Stores (ROST) and Citi Trends (CTRN), with price targets raised to $100 from $85 and $22 from $18, respectively. He also maintained an âAccumulateâ rating on Burlington Stores (BURL) with a $165 price target, trimmed slightly from a prior $170 target. 

Earnings from both TJX Companies (TJX) and Ross Stores (ROST) are expected next week, while Burlington (BURL) and Citi Trends (CTRN) are expected to post quarterly results on November 22 and November 30, respectively.
Read more on retail stocks rising on Thursday.