BofA update shows where active managers are putting money
Investing.com - UBS has reiterated its Neutral rating and $144.00 price target on Ross Stores, Inc. (NASDAQ:ROST) following analyst store visits with management in Chicago on July 10th. According to InvestingPro data, analyst targets for the stock range from $124.24 to $175, with the company currently trading at a P/E ratio of 20.7x.
The investment firm believes Ross Stores is positioned to outgrow department store peers over the next few years, forecasting approximately 4.5% five-year earnings per share compound annual growth rate. The company has demonstrated solid performance with revenue of $21.3 billion in the last twelve months and maintains a strong financial health score of "GOOD" on InvestingPro, which offers comprehensive valuation metrics and growth analysis in its Pro Research Report.
UBS analysts maintain that this growth outlook justifies a price-to-earnings ratio of about 21x, noting they "lean positive" on the stock but keep a Neutral rating because they believe the market holds a similar view.
The firm suggests Ross Stores stock has potential to "grind slowly higher" as the market observes the company’s earnings growth and recognizes potential benefits from inventory dislocations across the retail landscape due to U.S. tariff situations in 2026.
Store visits conducted during the UBS Retail Bus Tour in Chicago on July 10th reinforced the firm’s outlook on the off-price retailer.
In other recent news, Ross Stores, Inc. has reported several significant developments. The company has entered a new $1.3 billion revolving credit facility, replacing its previous agreement, with Bank of America acting as the administrative agent. This facility, effective from June 2025, includes options for extension and increases, contingent on lender approval. On the earnings front, JPMorgan has raised its price target for Ross Stores to $154, citing potential growth in store sales and marketing initiatives aimed at refreshing the store chain by the end of fiscal year 2026. Jefferies has upgraded Ross Stores from Hold to Buy, raising the price target to $150 due to margin opportunities and a valuation gap compared to peers. UBS, however, has maintained a Neutral rating with a $144 price target, noting the company’s potential growth but also highlighting risks such as potential tariff impacts. These recent developments indicate a varied outlook from analysts, with some seeing potential for growth and others maintaining a cautious stance.
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