MKM Partners Raises Price Target on Ross Stores (ROST) to $72 Following Solid 2Q Report
Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium here.
MKM Partners reiterated a Buy rating on Ross Stores, Inc. (NASDAQ: ROST), and raised the price target to $72.00 (from $65.00), following the company's 2Q earnings report. ROST reported EPS of $0.71, ahead of the Street's $0.67 estimate and ahead of management's $0.64-$0.67 guidance. Full-year EPS is now projected to be $2.69-$2.75, representing 7-10% EPS growth.
Analyst Roxanne Meyer commented, "2Q EPS of $0.71 was ahead of our/ Street's $0.67 and ahead of $0.64-$0.67 guidance, with $0.03 of the upside vs. our model driven by a higher merchandise margin and $0.01 by a higher comp. Comps rose 4%, above guidance and our/Street’s 2% estimate, impressive given residual merchandise issues still remain in women's, which is nearly 30% of sales. With women's comps slightly positive (an improvement vs. 1Q), we estimate home (and shoes), which outperformed the chain, comped in the high single digits. Additionally, we were encouraged to see traffic gains return. The 4% comp represents a 1 and 2 pt comp improvement vs 1Q on a 2- and 3-year stack, respectively. Merchandise margin gains were supported by lean in-store inventory, which ended down 1%."
Shares of Ross Stores, Inc. closed at $62.88 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Susquehanna Cuts Price Target on KLA-Tencor (KLAC) Following Strong 1Q
- Needham & Company Raises Price Target on II-VI, Inc. (IIVI) Ahead of 1Q Release
- BMO Capital Raises Price Target on ManpowerGroup (MAN) Following 3Q Surprise
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!