William Blair analyst Dylan Carden has maintained their bullish stance on ROST stock, giving a Buy rating on May 18.
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Dylan Carden has given his Buy rating due to a combination of factors, starting with Ross’s substantially better-than-expected first-quarter performance, highlighted by robust comparable-sales growth driven by higher transactions and a broader customer base across income levels, ages, and regions. He also notes meaningful margin expansion supported by improved merchandising, marketing, and in-store execution, with these gains reinforced by higher full-year guidance that already embeds a strong first half.
Carden further emphasizes that many of the merchandising and marketing initiatives were put in place well before the recent results and are now gaining momentum, drawing in more new and younger customers and enhancing the overall store experience. He views Ross’s expanded access to brands, increased addressable market, and ongoing store and marketing refreshes as structural drivers that should sustain positive comps near the 2%–3% range, reducing downside risk and supporting a favorable risk-reward profile for the shares.
In another report released on May 18, J.P. Morgan also assigned a Buy rating to the stock with a $251.00 price target.