Jefferies downgrades TJX stock rating on Marmaxx slowdown concerns

Jefferies has lowered its rating on TJX Companies' stock from Buy to Hold, citing concerns over the performance of the Marmaxx division. The firm reduced its price target from $180.00 to $145.00. TJX's Marmaxx, which accounts for over 60% of sales and nearly 70% of EBIT, experienced a slowdown in comparable sales to 1% from 6%. This marks the weakest performance since fiscal year 2018, excluding the impact of COVID.

Analysts have revised their earnings downward for the upcoming period, and the stock appears to be oversold. Despite previous recoveries, Jefferies believes it may take time for TJX to overcome the challenges. The firm noted that competitor Ross Stores continues to outperform, widening the execution gap. TJX has reported stronger-than-expected results for the second quarter of fiscal 2027, but faces a challenging outlook for the remainder of the year due to slower growth and lower margins.