Consumer Discretionary
Gordon Haskett Research Advisors
Time to add more Off-Price Retail exposure - while Chuck Grom turned incrementally more positive on the OPR space when he recently upgraded TJX to Buy, he has been waiting for more “evidence” that middle-income shoppers would begin to trade down, while simultaneously looking for proof that inventory levels would improve. Commentary from Walmart, Target and Kohl’s suggests that this trade down is now occurring, while most retailers have made commendable progress since 2Q on the inventory front. As a result, Chuck upgrades ROST to Buy and increases his EPS estimates for FY22 to $4.30 and FY23 to $5.40.
Edition: 149
- 25 November, 2022