Read How Analysts Reacted To Ross Stores' Q2 Results
Morgan Stanley analyst Kimberley Greenberger reiterated an Overweight rating on Ross Stores Inc (NASDAQ: ROST) with a price target of $118.
The analyst said Ross Store's Q2 EPS surpassed expectations due to lower incentive costs.
The management's move to cut FY guidance appears prudent in light of the uncertain macroeconomic backdrop & the company's two consecutive topline misses, added Greenberger.
The 55% rise in the inventory level, the analyst thinks is mostly the result of early inventory receipts against expectations for longer lead times and is comparable to pre-pandemic levels.
Greenberger regards the inventory & trade-down benefits should support performance acceleration as consumers seek value which is likely to happen in the second half and 2023.
The market share capture from competitor bankruptcies/store closures, favorable customer fundamentals, and high Hispanic exposure, the fastest growing population in the U.S., support revenue and earnings growth prospects.
Credit Suisse analyst Michael Binetti maintained an Outperform rating on the shares and raised the price target to $99 from $92.
Wells Fargo analyst Ike Boruchow maintained an Equal-Weight rating on the shares and raised the price target to $90 from $80.
Telsey Advisory Group analyst Dana Telsey maintained a Market Perform rating on the shares with a price target of $80.00.
Telsey said Q2 performance reflected continued macro and inflationary headwinds that have resulted in a more promotional retail environment and increasing freight costs along with inflation impact on customers.
BMO Capital analyst Simeon Siegel reiterated an Outperform rating on the shares and raised the price target to $95.00 from $92.00.
Siegel believes this is the second quarter with more questions than answers, and heightened inventory will need monitoring ahead of looming discounts.
UBS analyst Jay Sole maintained Ross Stores with a Neutral and raised the price target from $85 to $92.
Baird analyst Mark Altschwager maintained Ross Stores with an Outperform and increased the price target from $90 to $105.
Price Action: ROST shares are trading lower by 1.17% at $90.92 on the last check Friday.
Photo Via Wikimedia Commons
Latest Ratings for ROST
Date | Firm | Action | From | To |
|---|---|---|---|---|
Mar 2022 | Barclays | Maintains | Overweight | |
Mar 2022 | Morgan Stanley | Maintains | Overweight | |
Mar 2022 | Deutsche Bank | Maintains | Buy |
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