Get out of TJ Maxx owner TJX Companies (TJX), that’s the recommendation this morning from Jefferies & Co. analyst Randal Konik, who writes that the company’s Q1 report tomorrow may show signs of tougher comparisons with last year’s performance. Konik reiterated an “Underperform” rating on the stock.
TJX is “running on all cylinders,” writes Konik, but it can’t last, he thinks, as the business has likely peaked given that “inventories are much tighter across full price and wholesale channels,” so that the off-price discounting business of TJX and its ilk will start to lose ground, as excess supplies of merchandise shrink.
TJX shares are off 46 cents, or 1%, at $44.79.
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