Treasure Hunt Tailwinds

TJX Cos. $TJX ( ▲ 1.41% ) is winning praise from Wall Street even after a mixed market reaction to earnings.

Both Bernstein $EQH ( ▼ 4.15% ) and Bank of America $BAC ( ▼ 4.72% ) reiterated Overweight and Buy ratings, respectively, and lifted their 12-month price targets to $175, implying roughly 9% upside.

Bernstein analyst Aneesha Sherman called TJX an AI-proof retail compounder, pointing to its offline, treasure hunt shopping experience that is hard to replicate online.

TJX beat earnings and revenue expectations in its fiscal fourth quarter. Shares slipped after the company issued softer current-quarter and full-year guidance.

Sherman said management described quarter-to-date trends as solid, with CEO Ernie Herman noting the company is off to a strong start.

TJX trades at a forward multiple of around 30. Bernstein believes that valuation has room to expand, particularly relative to peers such as Ross Stores $ROST ( ▲ 1.05% ) and Burlington Stores $BURL ( ▼ 0.69% ).

Bank of America lowered its fiscal 2026 and 2027 EPS estimates due to higher operating costs but called its projections conservative.

Analyst Lorraine Hutchinson expects improvement throughout the year and sees TJX continuing to outperform despite tariff uncertainty.

She noted that the ability to take price in a tariff environment can actually support margins. Selling fewer units per dollar of sales growth reduces shipping and distribution costs, driving operating leverage.

In a market worried about AI disruption and trade volatility, analysts see TJX as a steady operator with pricing power and a differentiated model.