03:05 PM EDT, 08/06/2024 (MT Newswires) -- TJX (TJX) is likely to beat Q2 earnings estimates by a small margin on the back of "solid sales momentum," UBS said in an earnings preview.

"We expect a solid Q2 report, but think this is already priced in," the report said.

UBS said it expects the company to beat Q2 estimates by $0.03 and then raise its fiscal year earnings guidance by the same amount. UBS also cautioned that the company could also announce Q3 earnings guidance slightly blow consensus.

"This causes us to see a balanced upside/downside skew around the event," UBS said in the note.

According to the firm, the options market was pricing a +/-4.7% jump over the event against a 3.6% historical average move.

"We agree with the options market's view," UBS said.

UBS forecast Q2 EPS of $0.93, against the consensus of $0.92. It expects Q3 earnings guidance of $1.04 to $1.07.

The firm reiterated its Buy rating on the stock with a price target of $134.

Price: 110.32, Change: +1.43, Percent Change: +1.31