TJX Upgraded To Buy At Goldman; JC Penney Cut To Sell

MarketWatch Pulse

TJX Cos. shares rose Wednesday, after Goldman Sachs upgraded the stock to buy and added it to its Americas Conviction List, saying its international expansion is under appreciated and a soft third quarter will prove a blip. "Furthermore, we expect TJX to be a beneficiary of west coast port issues, lower fuel prices, and ongoing inventory disruptions in the mid-tier caused by the shift online," Goldman analysts said in a note. Elsewhere in the broadlines retail sector, Goldman downgraded J.C. Penney to sell from neutral and said competitive changes will prevent management from achieving its multi-year targets. The investment bank downgraded Burlington Stores to neutral from buy and said it sees only 5% upside to its upwardly revised price target. It removed Ross Stores from its Conviction List but kept it at buy, saying the "fundamental inflection in 3Q should continue amidst falling fuel prices and port disruptions."

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