TJX (TJX) posted "very solid" fiscal Q1 results and the company is likely to take major market share from competitors in the department store space over the next few years, UBS Securities said in a note Wednesday.

The company's new businesses like HomeSense and Sierra Trading Post as well as its international operations, particularly its entry into Spain through its TK Maxx banner, show "significant potential," the investment firm said.

UBS said it expects TJX to deliver an about 10.5% earnings per share compound annual growth rate over five years.

The firm highlighted that in its fiscal Q1 report, TJX raised its fiscal 2027 EPS guidance to between $5.08 and $5.15, from the $4.93 to $5.02 range previously, reflecting a better pre-tax margin outlook despite higher fuel costs.

UBS reiterated its buy rating on TJX and lifted the price target to $197 from $193.

Shares of TJX were down more than 1% in Thursday trading.

Price: 156.90, Change: -2.31, Percent Change: -1.45