TD Cowen analyst John Kernan has reiterated their bullish stance on ROST stock, giving a Buy rating on February 24.
John Kernan has given his Buy rating due to a combination of factors that highlight Ross Stores’ strong historical performance and potential for future growth. Despite the challenges posed by external factors such as illegal immigration and economic uncertainties, Ross Stores has consistently achieved positive same-store sales growth, demonstrating its ability to capture market share and enhance customer engagement.
The company’s strategic initiatives, including its branded mix initiative and focus on improving store experience, are expected to drive productivity and profitability. Additionally, the valuation discount compared to peers like TJX is seen as too steep, suggesting potential for stock price appreciation. Kernan also notes the favorable buying environment and potential margin improvements, which could further support earnings growth. Overall, these elements contribute to a positive outlook for Ross Stores, justifying the Buy rating.
Kernan covers the Consumer Cyclical sector, focusing on stocks such as On Holding AG, Dick’s Sporting Goods, and Lululemon Athletica. According to TipRanks, Kernan has an average return of 9.8% and a 53.65% success rate on recommended stocks.
In another report released on February 24, J.P. Morgan also maintained a Buy rating on the stock with a $166.00 price target.
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