TJX Companies (TJX) has strategies across marketing, merchandise, and store experience to ensure comparable-sales strength as well as continued share gains, BofA said in a Thursday research note.

The company is using marketing to target a broad customer demographic, including younger shoppers by focusing on digital media, with this year set to feature fresh campaigns and partnerships across banners and channels like streaming, BofA said.

TJX Companies also continues to see "outstanding" product availability, which is improving further as the company scales. Additionally, management remains focused on improving the in-store experience with investments in payroll and training, according to the note.

Looking ahead, BofA said it is modeling gross margin to rise 20 basis points in Q2 and 30 basis points in fiscal 2027, including 20 basis points of pressure in Q2 through Q4 from fuel surcharges. Additionally, lower fuel costs will benefit margins relatively quickly given the company's fast inventory turnaround, BofA said.

BofA raised its earnings per share estimates to $5.15 from $5.01 for 2027, $5.56 from $5.48 for 2028, and $6.09 from $6.00 for 2029.

BofA reiterated its buy rating with a price target of $175.

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