Analyst John Kernan of TD Cowen reiterated a Buy rating on Ross Stores, retaining the price target of $161.00.
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John Kernan has given his Buy rating due to a combination of factors that indicate a positive outlook for Ross Stores. The company has experienced an increase in customer traffic since mid-June, with July showing a significant acceleration in visits, suggesting a strengthening buying environment. This improvement is particularly notable in stores located in border states, which account for a substantial portion of Ross Stores’ total store base.
Additionally, Ross Stores has a strong presence among low-income and Hispanic consumers, which aligns with the demographic trends in the off-price retail sector. The company’s sales and earnings projections for the upcoming quarters are in line with or exceed market consensus, reflecting confidence in its financial performance. Furthermore, the valuation gap between Ross Stores and its competitor TJX remains significant, providing an attractive investment opportunity. These factors collectively support Kernan’s Buy rating for Ross Stores.
According to TipRanks, Kernan is a 5-star analyst with an average return of 9.7% and a 53.91% success rate. Kernan covers the Consumer Cyclical sector, focusing on stocks such as Deckers Outdoor, Dick’s Sporting Goods, and Lululemon Athletica.
In another report released on July 28, J.P. Morgan also maintained a Buy rating on the stock with a $156.00 price target.