Ross Stores stock price target raised to $162 from $161 at TD Cowen

Investing.com - TD Cowen has raised its price target on Ross Stores, Inc. (NASDAQ:ROST) to $162.00 from $161.00 while maintaining a Buy rating on the stock. The prominent specialty retailer, with a market capitalization of $47.5 billion and annual revenue of $21.5 billion, currently trades at a P/E ratio of 22.8x. According to InvestingPro analysis, the stock appears fairly valued at current levels.

The firm noted that Ross Stores management has reinstated its fiscal year 2025 guidance, which falls slightly below the initial guidance provided after the fourth quarter of 2024 when adjusting for tariffs. The company has demonstrated strong financial discipline, maintaining dividend payments for 32 consecutive years with a recent 10.2% dividend growth rate.

TD Cowen expressed satisfaction with the company’s second-half comparable sales guidance of +2% to +3% and indicated that year-over-year EBIT margin declines are expected to end in the fourth quarter, despite a projected $0.04 to $0.06 hit to earnings per share in Q4 from tariffs.

The research firm models fiscal year 2026 to return to +11% EPS growth with slightly improved merchandise margin year-over-year for Ross Stores.

The new $162 price target represents a multiple of 23 times the firm’s fiscal year 2026 earnings estimate for the off-price retailer.

In other recent news, Ross Stores Inc . reported its second-quarter earnings for 2025, exceeding earnings per share (EPS) expectations with a figure of $1.56, compared to the forecasted $1.53. However, the company’s revenue slightly missed projections, recording $5.53 billion against an anticipated $5.54 billion. Wells Fargo (NYSE:WFC) raised its price target for Ross Stores to $165 from $150, maintaining an Overweight rating, citing improved sales momentum and lower-than-expected tariff pressures. UBS also adjusted its price target to $147, up from $144, while keeping a Neutral rating, indicating a positive growth outlook for Ross Stores compared to its department store peers. Bernstein SocGen Group reiterated its Market Perform rating and a $147 price target, noting a cautiously optimistic stance following the company’s in-line second-quarter results and slightly conservative fiscal year guidance. These developments highlight a mix of analyst perspectives on Ross Stores, reflecting varied expectations for the company’s future performance.

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