Analyst Aneesha Sherman of Bernstein maintained a Hold rating on Ross Stores, retaining the price target of $147.00.
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Aneesha Sherman has given her Hold rating due to a combination of factors that reflect both optimism and caution regarding Ross Stores’ financial outlook. The company reported results that met expectations for the second quarter and reinstated its full-year guidance, although with a slightly more cautious outlook on margins. This cautious stance comes despite management’s optimistic tone about current trends and strong performance in the second quarter.
Management’s guidance for the second half of the year suggests a cautious approach, even though they have increased their comparable sales guidance. The earnings per share guidance for the full year has been slightly lowered, which is attributed to a mix of sales and margin considerations. The company’s consistent 10% earnings growth algorithm and fair valuation as a mature retailer support the Hold rating, as the stock appears to be fairly priced given its steady and predictable business model.
In another report released today, Morgan Stanley also maintained a Hold rating on the stock with a $130.00 price target.