William Blair analyst Dylan Carden has maintained their bullish stance on ROST stock, giving a Buy rating today.
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Dylan Carden has given his Buy rating due to a combination of factors that suggest a positive outlook for Ross Stores. The company’s recent quarter results, although slightly below elevated expectations, affirm the strategic direction under the new CEO, Jim Conroy. Conroy’s past success at Boot Barn is seen as a promising indicator of his ability to enhance both marketing and store experience, which are still in the early stages of development but already showing potential.
Additionally, Carden sees a valuation opportunity for Ross Stores to catch up with its competitor, TJX, as the historical valuation trends suggest a potential upside. The current valuation of Ross Stores’ shares is lower compared to TJX, indicating a possible 25% increase if the gap is closed. Furthermore, Ross Stores is expected to maintain steady growth with stable to improving margins, although there is a risk of uneven performance as the new strategies are implemented.
According to TipRanks, Carden is a 4-star analyst with an average return of 11.8% and a 52.94% success rate. Carden covers the Consumer Cyclical sector, focusing on stocks such as National Vision Holdings, Ulta Beauty, and Revolve Group.
In another report released today, Bank of America Securities also reiterated a Buy rating on the stock with a $200.00 price target.