Key Takeaways
Two discount retail shares managed to avoid the steeper dropoffs seen by some other big retailers in the wake of the Trump administration's latest tariffs .
TJX Cos. ( TJX ) shares edged higher in recent trading Thursday. Ross Stores ( ROST ) ticked a bit lower, but its decline was notably smaller than those of Target ( TGT ), Best Buy ( BBY ), and Five Below ( FIVE ), all of which were down more than 10%.
Citi analysts upgraded Ross and TJX, parent company of T.J. Maxx and HomeGoods, to "buy" ratings on Thursday. They lifted their price target on the latter stock to $140, in line with the Street's consensus according to Visible Alpha, from $128, saying the retailer is "as well positioned as ever."
"Tariffs are likely to create significant disruption in the [market], greatly increasing the availability of product available to off-pricers at attractive prices," the analysts wrote. "At the same time, a potentially weakening consumer environment will mean more consumers are likely to trade down to the off-price channel in search of value."
Oppenheimer and UBS analysts also issued notes Thursday on the retail industry, saying giants like Walmart ( WMT ) and Costco ( COST ) are likely to weather the tariff storm as well.
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