TD Cowen analyst John Kernan maintained a Buy rating on Ross Stores yesterday and set a price target of $162.00.
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John Kernan has given his Buy rating due to a combination of factors that highlight Ross Stores’ potential for growth and resilience. The company has shown positive momentum in its comparable store sales, with a notable acceleration in the second quarter, indicating effective merchandising strategies and an appeal to value-conscious consumers. This momentum is expected to continue into the third quarter, with management guiding for further comparable sales growth.
Additionally, despite facing challenges such as tariff impacts, Ross Stores is projected to see an improvement in its operating margins by the fourth quarter, setting a favorable stage for fiscal year 2026. The company’s strategic initiatives, including store-level refreshes and an enhanced branded strategy, particularly in Ladies Apparel, have contributed to its positive performance. These factors, combined with a strong execution in merchandising and a potential benefit from consumer trade-down behavior, underpin Kernan’s optimistic outlook and Buy rating for Ross Stores.
Kernan covers the Consumer Cyclical sector, focusing on stocks such as Lululemon Athletica, Deckers Outdoor, and Dick’s Sporting Goods. According to TipRanks, Kernan has an average return of 9.4% and a 54.07% success rate on recommended stocks.
In another report released on August 19, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $165.00 price target.