Ross Stores price target lowered to $130 from $140 at Morgan Stanley

Morgan Stanley lowered the firm’s price target on Ross Stores (ROST) to $130 from $140 and keeps an Equal Weight rating on the shares. A roughly in-line Q4 and “disappointing” Q1 and fiscal year guidance leave the firm “incrementally convicted in the drivers of our downgrade to Equal-weight in January,” the analyst tells investors. The quarter further underscored the key reasons the firm became less constructive, including lack of visibility around achievability of the margin recapture opportunity, uncertainty from recent leadership changes and long-dated challenges in the “all-important apparel category,” the analyst added.