Goldman Sachs has revised its price target for TJX Companies (TJX, Financial), reducing it from $142 to $141, while maintaining a Buy rating on the shares. This adjustment stems from a broader reassessment of the U.S. apparel and softlines sector due to a more cautious macroeconomic environment.
The firm has also significantly lowered its U.S. GDP growth forecast for 2025 to 0.5%, down from 2.5% projected for 2024, based on fourth-quarter comparisons. This revision is accompanied by an increased estimation of a recession occurring, now pegged at a 45% likelihood.
Despite not fully factoring a recession into its predictions, Goldman Sachs highlights potential challenges such as recent market turbulence, heightened geopolitical tensions, and elevated tariff rates, which could negatively impact earnings across the sector.
