Off-price retailers like TJX (TJX), Ross Stores (ROST), and Burlington Stores (BURL) could see an opportunity from near-term freight pressure, BofA Securities said in a Friday note.

The opportunities stem from smaller increases in ocean freight and diesel prices versus that in 2021/2022, more stable outlook for comparable sales, and recent hikes in average unit retail, which mean fewer units are shipped or distributed for each dollar of sales. the brokerage said.

According to BofA, inflation appears to be more manageable today for consumers and certain companies are implementing product elevation strategies to secure market share gains and comparable sales growth.

BofA Securities reiterated buy ratings for TJX, Ross Stores, and Burlington Stores.

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