TJX (TJX) is well positioned to continue taking market share from department stores over the next several years, UBS Securities said in a note Tuesday.

The analysts said the company's growth potential is based on newer businesses such as HomeSense and Sierra, as well as international expansion, including the recent launch of the TK Maxx banner in Spain. UBS also forecasts about 10.5% annual earnings per share growth for TJX over the next five years.

UBS's ninth annual US Off-Price and Department Store Consumer Survey reinforces this positive view, the analysts said, adding that 71% of consumers associate the brand with "good value for money," compared with roughly 47% for department store peers such as Macy's (M).

"This roughly 24 percentage point perception gap is decisive - it demonstrates TJX owns the core consumer decision driver, underpinning sustained traffic capture and reinforcing a durable competitive moat that should support ongoing share gains from Department Stores," the analysts added.

The investment firm expect TJX's earnings per share to be $5.40 in fiscal 2027, compared with consensus estimates of $5.23, $6 in fiscal 2028 versus consensus of $5.76, and $6.65 in fiscal 2029 versus consensus of $6.30.

UBS has a buy rating and a $197 price target on TJX.

Price: 163.65, Change: +3.90, Percent Change: +2.44