Ross Stores stock price target maintained at $161 by TD Cowen

Investing.com - TD Cowen has reiterated its Buy rating and $161.00 price target on Ross Stores, Inc. (NASDAQ:ROST), currently valued at $46.4 billion by market cap, in a recent research note. According to InvestingPro data, the company maintains a healthy financial profile with a GOOD overall rating.

The firm noted that customer traffic at Ross Stores accelerated through July, indicating positive momentum for the off-price retailer heading into the back-to-school shopping season.

TD Cowen’s field research suggests the buying environment in the off-price retail sector remains strong as the company approaches both back-to-school and holiday shopping periods, though home category inventory appeared light in stores.

The research highlighted Ross Stores’ significant exposure to low-income and Hispanic consumers, particularly in border state locations which represent more than 50% of the company’s total store base across California, Florida, Texas, and Arizona.

Ross Stores operates in the off-price retail segment, offering name-brand apparel, accessories, footwear, and home fashions at discount prices compared to department and specialty stores. Based on InvestingPro’s Fair Value analysis, the stock appears fairly valued, with additional insights available in the comprehensive Pro Research Report covering this prominent specialty retail player.

In other recent news, Ross Stores announced a new $1.3 billion revolving credit facility, replacing its previous agreement. This facility, effective until June 2030, offers the company additional financial flexibility with options to extend and increase borrowing capacity. In terms of stock analysis, Jefferies upgraded Ross Stores from Hold to Buy, raising its price target to $150 due to margin opportunities and valuation comparisons with peers. Meanwhile, UBS maintained a Neutral rating with a $144 price target, projecting a 4.5% compound annual growth rate for earnings per share over the next five years. Similarly, JPMorgan kept its Overweight rating but increased its price target to $154, anticipating growth in store traffic and sales. Ross Stores is focusing on marketing and store experience enhancements, which are expected to boost same-store sales by 3-4% over time. These developments highlight the company’s strategic efforts to strengthen its market position and financial performance.

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