Why TJX Is Soaring 13% After Analyst Upgrade

Shares of The TJX Companies (NYSE: TJX), a leading off-price retailer of apparel, home furnishings, and other consumer products, jumped over 13% higher Wednesday morning after an analyst rating continued a recent trend.

Analysts can be right, and analysts can be wrong, and savvy investors should take any upgrade or downgrade with a grain of salt -- but it is worth paying attention to what analysts have to say. RBC Capital analyst Kate Fitzsimons upgraded TJX from sector perform to outperform. Despite the upgrade, Fitzsimons moved the price target from $64 per share down to $45. In a note to investors, Fitzsimons explained that while COVID-19 will likely be a speed bump, TJX's still has long-term market share opportunities. An upgrade plus a price target demotion has been a recent trend: Citi analyst Paul Lejuez lowered the price target on TJX from $70 per share down to $57, but kept a buy rating, and Michael Baker, an analyst at Nomura Instinet, also kept a buy rating on shares but lowered the target from $70 per share down to $58.

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Source Fool.com