Citi believes that two off-price retailers could benefit from the new tariffs unveiled by President Donald Trump: TJX and Ross Stores . Analyst Paul Lejuez upgraded both stocks to buy from neutral. He raised his price target on TJX to $140 from $128, implying upside of 12%. He maintained his Ross target of $146, which signals a gain of more than 10%. “Tariffs are likely to create significant disruption in the mkt, greatly increasing the availability of product available to off-pricers at attractive prices,” he wrote. “We view off-price as defensively positioned in the near-term, but well-positioned for continued growth in the long-term as other retailers struggle and close stores (which may become even more prevalent if the consumer weakens).” Trump unveiled steep tariffs on goods from many countries , including a 34% duty on Chinese imports and a 20% levy on goods from the European Union. The move sent global markets tumbling . However, Lejuez thinks “ROST should benefit from the current environment/tariff disruptions leading to better traffic/sales and better margins. We also expect more consumers to trade down to ROST compared to the post-pandemic period, more consistent with historical periods of consumer weakness.” Shares are down more than 12% this year. ROST 1Y mountain ROST 1Y chart As for TJX, Lejuez said the company can “benefit from the attractive buying environment, helping sales and margins in the near-term. The company has significant momentum and had a strong holiday season (comps +5% in 4Q) and while comps were softer in Feb, we believe that was largely due to weather.” “We expect sales to benefit from customers trading down to the off-price business in the challenging environment,” he said. Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today’s dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles, and Dan Ives, with a special edition of Pro Talks with Tom Lee. You’ll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
