Evercore ISI cuts Ross Stores price target to $170, keeps Outperform

On Wednesday, Evercore ISI made an adjustment to the price target of Ross Stores, Inc. (NASDAQ:ROST), reducing it from $175.00 to $170.00. Despite this change, the firm has decided to maintain its Outperform rating on the company’s stock. This comes at a time when peer Burlington Stores (NYSE:BURL) is trading at $230.27, with a P/E ratio of 31.54 and has seen its stock decline 19.22% year-to-date, according to InvestingPro data.

Evercore ISI’s decision to lower the price target comes as they anticipate certain pressures that have been affecting the company to ease in the near term. These pressures are not expected to have a lasting impact on Ross Stores’ operating model beyond the current year, and certainly not past the first half. Consequently, the firm is keeping its 2026 earnings per share (EPS) estimate steady at $7.45. For investors interested in deeper analysis of retail sector dynamics, InvestingPro offers comprehensive peer comparison tools and exclusive ProTips, with 10+ additional insights available for Burlington alone.

However, the analysts have revised their first-quarter EPS estimate down to $1.46 from $1.48, and their 2025 EPS forecast to $6.70 from $6.80, which is still slightly above the Street’s consensus of $6.67. The price target adjustment to $170 reflects a slightly higher risk profile for Ross Stores in the first half of 2025, especially when compared to its peers TJX (NYSE:TJX) and Burlington. Speaking of Burlington, InvestingPro data shows the company maintains a strong market position with a $14.46B market cap and will report its next earnings on March 6, 2025, with analysts maintaining a bullish consensus.

The firm’s analysts provided further insight, stating, "Bottom Line: With many of the pressures discussed today likely to dissipate in the near term and which we believe are unlikely to impact the operating model beyond this year (or even beyond the front half), we’re maintaining 2026 EPS at $7.45. That said, we’re lowering 1Q EPS to $1.46 (from $1.48) and 2025 to $6.70 (from $6.80; Street $6.67). Trim our Target (NYSE:TGT) Price to $170 from $175 due to ROST confirming a slightly higher risk profile in the front half of 2025 (relative to TJX/BURL). Maintain Outperform."

Investors will be watching closely to see how Ross Stores performs in the coming quarters and whether the retailer will be able to navigate the risks outlined by Evercore ISI while striving to meet the long-term EPS targets. For those seeking comprehensive analysis of retail sector stocks, InvestingPro provides detailed financial health scores, Fair Value estimates, and exclusive research reports for over 1,400 US stocks, including Ross Stores and its peers.

In other recent news, Burlington Stores has attracted attention from several analyst firms due to its financial performance and strategic initiatives. Citi analysts maintained a Buy rating on Burlington Stores, setting a price target of $344. They anticipate fourth-quarter earnings per share (EPS) to exceed market consensus, with a projection of $3.94 compared to the consensus of $3.76. This optimism is supported by a 9.5% increase in foot traffic during the fourth quarter, partially attributed to colder weather conditions. Meanwhile, TD Cowen also reiterated a Buy rating and raised its price target to $339, highlighting Burlington Stores as their Best Idea for 2025. They emphasized the company’s potential for a compound annual growth rate of over 20% in EPS over the next three to five years, driven by improvements in merchandising and supply chain enhancements. Both firms noted that Burlington’s strategic focus on value and adaptability positions it well for future growth. Additionally, margin expansion is expected through faster inventory turnover and reduced markdowns. These factors collectively contribute to the positive outlook shared by analysts.

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