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- Loop Capital turns cautious on the discounting sector with downgrades on TJX Companies (NYSE:TJX), Ross Stores (NASDAQ:ROST) and Burlington Stores (NYSE:BURL) to Hold from Buy.
- The firm warns that the chains could have understocked stores and supply chain issues through the holiday season after conducting some channel checks.
- "We are cutting our sales and EPS estimates for BURL in all future periods, and we’re shaving F2022 for ROST and TJX. We see under-stocked stores, especially in seasonal and home goods. We see less luxury brand product than usual in stores as well, with virtually none outside of the Manhattan BURL and TJX stores we checked. All stores we visited seemed understaffed."
- ROST and TJX are both down about 1% in premarket action.
- Compare ratings and valuation marks on ROST, TJX and BURL.