Ross Stores downgraded to Neutral from Buy at Citi

Citi analyst Paul Lejuez downgraded Ross Stores (ROST) to Neutral from Buy with a price target of $152, down from $179. The firm says that after having more time to digest the upcoming management transition at Ross, the combination of a management change that brings increased uncertainty to the story and the stock’s “relatively high multiple” create a less favorable risk/reward. Citi e prefers to be on the sidelines as the company moves through its transition. Near term, its expect an inline quarter, but says investor sentiment has skewed much more negative on fears of weaker sales.