TJX Companies (TJX) is set to deliver "in-line" Q2 EPS report and raise guidance, with limited impact expected on its valuation, UBS said in a note Tuesday.
The company is scheduled to report the results on Aug. 19.
The analysts said TJX had sales momentum through July, which they expect to support an in-line fiscal Q2 earnings per share, compared with the Street's $1.19 estimate. They also expect the company to lift its fiscal 2027 EPS guidance from $5.08- $5.15 to $5.10-$5.17.
"We believe the market expects a similar outcome and thus doubt TJX's print changes the stock's [price-to-earnings ratio] much. This is why we see a balanced upside/downside skew around the event," the analysts added.
The analysts said investors they spoke with see TJX as having the best combination of defensiveness and growth among Softlines stocks. Even if the Marmaxx division reports weaker-than-expected fiscal Q2 comparable sales, the analysts do not think this will significantly change the market's view of TJX.
UBS kept its buy rating and a $197 price target on TJX.
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