Off-price retailer TJX Cos. price target jumps on business model strength

TJX Cos. whose portfolio of off-price chains includes T.J. Maxx and Marshalls, saw its price target jump to $105 from $98 at Susquehanna Financial Group, with analysts calling it "one of the best business models in the entirety of retail." Susquehanna rates TJX shares positive. TJX reported stronger-than-expected sales in the first quarter. Susquehanna thinks the company should "continue to drive sales and earnings growth well into the future." MKM Partners also raised TJX's price target, to $99 from $94. "We continue to view TJX as one of the best longer-term growth stories in retail, and point to the consistency of broad-based traffic gains as underpinning TJX's strong fundamentals," analysts wrote in a note. "The comp momentum in 1Q was an upside surprise and occurred despite residual merchandising and freight issues, which are in the rearview mirror." MKM rates TJX shares buy. And Cowen analysts think TJX's business could expand further into resale. Customers of both off-price and resale are looking for a good deal on big-name brands and hot trends. And TJX management called resale an "intriguing" space. Cowen rates TJX shares outperform with a $98 price target. TJX shares are up 14.4% for the year to date while the S&P 500 index is up 1.9% for the period.