TJX (TJX) is likely to post a "small" fiscal Q2 beat and raise its fiscal 2026 EPS outlook by a similar amount, UBS Securities said in an earnings preview Tuesday.

"We believe TJX had solid sales momentum through August MTD," the report said ahead of its Q2 results on Aug. 20.

The note said the sell-side and market also expect a similar outcome, limiting sell-side EPS estimates and TJX's P/E from changing much.

"This causes us to see a balanced upside/downside skew around the event," the report said.

UBS also said it expects TJX to take "major" market share from department stores and to benefit from the disruption that tariffs may cause for US retailers in H2.

UBS maintained its buy rating and $164 price target.

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