Calls of the Day: TJX Companies and the XLU
Speakers
Summary
The Investment Committee reviews the day's calls on TJX and utilities. TJX is under pressure after a Jefferies downgrade to hold and weak Marmaxx results. The debate shifts to utilities and data-center power names, where one panelist argues energy remains the bottleneck and another makes a specific case for Vistra.
- Jefferies cut TJX to hold and lowered its target to $145 from $180.
- TJX's Marmaxx division and TJ Maxx/Marshalls showed weak earnings.
- Barron's says utilities are historically unloved but the case for buying is growing.
- Rising yields and data center backlash are seen as headwinds for utilities.
- Rob argues NRG and Vistra still have room as data-center energy demand remains a bottleneck.
- Vistra is highlighted for its Helix partnership with KKR/NVIDIA, ERCOT positioning, and nuclear/gas contracts.
Ideas
TJX weak on Marmaxx consumer discretionary trouble.
Jefferies cut TJX to hold from buy and lowered its target to $145 from $180; Marmaxx earnings were weak, TJ Maxx and Marshalls underperformed, and consumer discretionary remains too difficult for momentum.
Energy bottleneck still supports NRG and Vistra.
Rob argues that NRG and Vistra remain opportunities because energy is the bottom bottleneck in the data center buildout; despite political backlash, existing data centers still need power, and utilities with this demand profile can support higher multiples.
