Ross Stores price target raised to $180 from $170 at Evercore ISI

Evercore ISI analyst Michael Binetti raised the firm’s price target on Ross Stores (ROST) to $180 from $170 and keeps an Outperform rating on the shares. Despite a top line miss, Ross delivered Q3 EPS of $1.48, which was above the Street at $1.40. Merchandise margin pressure has been the biggest headwind to EPS in 2024 and that will abate significantly in 2025, which could support another year of margin flow through above the long term algorithm next year, says the firm. However, Evercore adds that Ross will have to show that its improved merchandise strategy can start closing the multi-year same-store sales growth lag vs Marmaxx to close the discount to TJX (TJX).