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Research Alert: CFRA Raises Price Target On Shares Of Ross Stores

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month price target by $26 to $231, based on 30x our FY 27 EPS estimate and well above the company's three-year average forward P/E multiple of 23.5, reflecting our view of the continued outperformance of off-price retailers due to a near-perfect operating environment where middle- and low-income consumers continue to trade down and seek out deals due to below-average savings rates and elevated inflation. We raise our FY 27 and FY 28 EPS estimates by $0.45 to $7.70 and $0.65 to $8.15, respectively. ROST posted strong FQ1 results well above estimates and raised its full-year guidance. The company now expects comparable store sales to grow 6% to 7% and EPS between $7.50 and $7.74. Shares now trade over 30x consensus for FY 27, well above their historical average and in line with competitor The TJX Companies (TJX **). We continue to believe these companies are operating in a near-perfect macroeconomic backdrop for off-price but view the valuation as priced to perfection.

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