William Blair analyst Dylan Carden has maintained their bullish stance on ROST stock, giving a Buy rating today.
Dylan Carden has given his Buy rating due to a combination of factors surrounding Ross Stores’ recent performance and future prospects. Despite a slight decline in sales for the fourth quarter, the company demonstrated resilience with a 3% growth in comparable sales, particularly in the cosmetics and children’s categories. This growth was supported by strong regional performance in the Pacific Northwest and Texas. Additionally, Ross Stores managed to maintain stable operating margins, which exceeded expectations, thanks to strategic cost management and a beneficial sale of a packaway facility.
Looking ahead, while the company anticipates some challenges in the first quarter of 2025 due to macroeconomic volatility and unseasonable weather, there is potential for upside. The management’s cautious yet optimistic outlook is bolstered by plans for 90 new store openings and the opportunity to capitalize on closeout inventory amid broader retail disruptions. These strategic initiatives, along with the company’s ability to navigate cost pressures, underpin Carden’s confidence in the stock’s potential, justifying the Buy rating.
In another report released today, Barclays also maintained a Buy rating on the stock with a $150.00 price target.