In a report released today, Robert Drbul from Guggenheim maintained a Buy rating on Ross Stores (ROST), with a price target of $105. The company’s shares closed yesterday at $94.51.
Drbul commented:
“We remain BUY rated and would use any weakness in shares as an incremental opportunity to accumulate; our price target is $105. ROST reported 1Q19 EPS of $1.15, above our estimate of $1.12, including a 2% comp sales gain (in line with our estimate). Total revenue was up 5.8% to $3.8bn (in line with our estimate). The comp sales increase in the quarter was led by an increase in basket size (with units up and AUR down slightly). Traffic was impacted by the softness in Ladies apparel, per mgmt. Gross margin was down 85bps (vs. our -70bps estimate), and SG&A expense deleveraged 10bps (better than our 50bps estimate), resulting in a ~100bps operating margin decline (vs. our -120bps estimate).”
According to TipRanks.com, Drbul is a 5-star analyst with an average return of 10.0% and a 65.4% success rate. Drbul covers the Services sector, focusing on stocks such as National Vision Holdings Inc, Ascena Retail Group, and Ralph Lauren Corp.
Ross Stores has an analyst consensus of Moderate Buy, with a price target consensus of $99.18, representing a 4.9% upside. In a report issued on May 13, Robert W. Baird also initiated coverage with a Buy rating on the stock with a $108 price target.
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The company has a one-year high of $104.35 and a one-year low of $75.91. Currently, Ross Stores has an average volume of 2.19M.
Based on the recent corporate insider activity of 60 insiders, corporate insider sentiment is negative on the stock.
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Ross Stores, Inc. engages in the operation of off-price retail apparel and home accessories stores. Its products include branded and designer apparel, accessories, footwear, and home fashions through the Dress for Less and dd’s DISCOUNTS brands. The company was founded by Stuart G. Moldaw in 1957 and is headquartered in Dublin, CA.
