Analyst Lorraine Hutchinson of Bank of America Securities reiterated a Buy rating on Ross Stores, boosting the price target to $200.00.
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Lorraine Hutchinson’s rating is based on Ross Stores’ strong financial performance and strategic initiatives. The company has shown impressive growth with a 7% increase in comparable sales, driven by higher transactions, units per transaction, and average unit retail. This growth has been consistent across various income demographics and geographic regions, indicating broad-based success.
Additionally, Ross Stores’ investments in store improvements and its branded strategy are yielding positive results, particularly in the ladies’ segment, which has seen significant improvement. The company’s management has provided optimistic guidance for the fourth quarter, with expected earnings per share surpassing previous estimates. Furthermore, the impact of tariffs is diminishing, which should further enhance profitability. These factors collectively support the Buy rating and the increased price objective of $200.
In another report released today, Barclays also maintained a Buy rating on the stock with a $183.00 price target.