TJX's (TJX) merchandise availability continues to be regarded as "highly favorable" despite some vendors delaying and cutting back orders, BofA Securities said in a note Thursday.

The firm said the company exited its Q1 with inventory up 7% due to "high levels of deal availability."

"The company's flexible model allows it to adjust buys of specific categories as necessary," BofA said.

The firm also noted management's confidence in being able to mitigate the impact from tariffs with strategies that include buying closer to need, adjusting category mix, moving sourcing of direct imports, vendor talks, cost savings measures and increasing prices in accordance with other retailers.

The firm said the tariff impact "should be mostly contained" to Q2.

BofA maintained the company's buy rating and $145 price objective.

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