TJX Companies (TJX) posted a solid Q2 quarter, topping forecasts on both sales and margins while raising its full-year guidance, pointing to a strong Q3 kickoff, BofA Securities said in a note Thursday.

TJX was able to offset the tariff pressure in Q2 maily due to stronbg buying capabilities and operational expense efficiencies, the analysts said.

BofA also believes the disruptions caused by tariffs created a favorable environment for merchandise availability, positioning TJX well for inventory heading into the holiday season.

"We expect modest price increases and strong buying to mitigate tariff pressure," the analysts added.

The brokerage raised its 2026 and 2027 earnings per share estimates by 3% and 2% respectively. EPS estimates were raised to $4.56 from $4.45 for 2026, $4.96 from 4.87 for 2027 and $5.43 from 5.39 for 2028. Analysts surveyed by FactSet expect $4.57, $5.05 and $5.55 for 2026, 2027 and 2028 respectively.

According to the report, the Q2 performance was broad-based, with strength across all income groups and no softness seen among lower-income customers or border locations, as Marmaxx comparable sales increased 3%.

Profit margins rose across all divisions, with the biggest lifts coming from TJX Canada (+100 basis points), HomeGoods (+90 bps), and International (+90 bps), with analysts expecting further improvement at HomeGoods.

The firm maintained its buy rating on the stock and raised its price target to $150 from $145.

Shares of the company were down 1% in recent Thursday trading.

Price: 136.90, Change: -1.37, Percent Change: -0.99