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5 Analysts Hiked Their TJX Price Targets Today -- Here’s Why 1 Cut Hers

By Rich Duprey - May 22, 2020 at 10:27AM

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The discount retailer is benefiting from expected gains as it reopens its stores.

Wall Street analysts were racing each other to see who could hike their price target on TJX Companies (TJX -0.39%) first amid store reopenings. The discount retailer reported first-quarter losses as sales were cut in half while stores were closed, but the company announced yesterday that sales were tracking higher than last year after about 1,600 stores have reopened. 

However, Loop Capital analyst Laura Champine went the other direction, cutting her price target on the retailer 16%, from $72 to $60 per share.

Women looking at clothes on rack

Image source: Getty Images.

Swimming against the tide

According to Thefly.com, Champine wrote in a note to investors she was lowering her pricing outlook on TJX due to the sales declines the retailer suffered this quarter, but was maintaining her buy rating on the stock because all stores that have been open for more than a week have exceeded the sales generated a year ago.

That wasn't enough to keep Champine from also taking an axe to her full-year earnings forecast, as she cut it all the way down to just $0.08 per share from her previous forecast of $2.89 per share.

In reality, Champine's price target cut wasn't so far out of line from the other analysts. In fact, she was probably an outlier before, having set her target so high. 

The other analysts from investment firms including Citi, DA Davidson, Deutsche Bank, Jefferies, and RBC Capital raised their targets to a range of $61 to $65 per share from ranges of $48 to $60 per share. Now the average price target of the six analysts is $63 a share, putting Champine's at the low end of the mix. 

Rich Duprey has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Jefferies Financial Group Inc. The Motley Fool recommends The TJX Companies. The Motley Fool has a disclosure policy.

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Stocks Mentioned

The TJX Companies, Inc. Stock Quote
The TJX Companies, Inc.
TJX
$64.16 (-0.39%) $0.25
Citigroup Inc. Stock Quote
Citigroup Inc.
C
$53.87 (-0.25%) $0.14
Deutsche Bank Stock Quote
Deutsche Bank
DB
$9.28 (1.53%) $0.14
Jefferies Financial Group Inc. Stock Quote
Jefferies Financial Group Inc.
JEF
$34.33 (0.32%) $0.11
Royal Bank of Canada Stock Quote
Royal Bank of Canada
RY
$99.52 (0.18%) $0.18

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