Ross Stores upgraded to Buy from Neutral at Citi

Citi analyst Paul Lejuez upgraded Ross Stores (ROST) to Buy from Neutral with an unchanged price target of $146. Tariffs are likely to create “significant disruption” in the market, greatly increasing the availability of product available to the off-price retailers at attractive prices, the analyst tells investors in a research note. At the same time, a potentially weakening consumer environment will mean more consumers are likely to trade down to the off-price channel in search of value, contends Citi. The firm views off-price as “defensively positioned” in the near-term, but well positioned for continued growth in the long-term as other retailers “struggle and close stores.” Citi expects Ross to benefit from the current environment and tariff disruptions, leading to better traffic, sales and margins.