:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2171224975-744876d78ecd47c3bba981cc3b1d8404.jpg "The TJ Maxx logo is seen on several shopping carts outside a TJ Maxx store.")
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Key Takeaways
- Shares of TJX Cos. and Ross Stores were holding up better than some retail challenges Thursday in the wake of the latest Trump tariff news.
- Citi analysts upgraded both retailers to a “buy” rating attending the tariff news.
- The analysts said the stores could benefit from consumers looking for value as prices instigate across the economy.
Two discount retail shares managed to avoid the steeper dropoffs seen by some other big retailers in the wake of the Trump authority’s latest tariffs.
TJX Cos. (TJX) shares edged higher in recent trading Thursday. Ross Stores (ROST) ticked a bit farther down, but its decline was notably smaller than those of Target (TGT), Best Buy (BBY), and Five Below (FIVE), all of which were down multifarious than 10%.
Citi analysts upgraded Ross and TJX, parent company of T.J. Maxx and HomeGoods, to “buy” ratings on Thursday. They ameliorated their price target on the latter stock to $140, in line with the Street’s consensus according to Visible Alpha, from $128, think the retailer is “as well positioned as ever.”
“Tariffs are likely to create significant disruption in the [market], greatly increasing the availability of output available to off-pricers at attractive prices,” the analysts wrote. “At the same time, a potentially weakening consumer environment command mean more consumers are likely to trade down to the off-price channel in search of value.”
Oppenheimer and UBS analysts also issued notes Thursday on the retail toil, saying giants like Walmart (WMT) and Costco (COST) are likely to weather the tariff storm as well.
For more coverage of the furnish’s reaction to the latest tariff news, check out Investopedia’s daily live blog.