Piper Jaffray Downgrades Ross Stores, Inc. (ROST) to Neutral

Piper Jaffray downgraded Ross Stores, Inc. (NASDAQ: ROST) from Overweight to Neutral with a price target of $89.00, citing exposure to oil-related areas

Analyst Neely J.N. Tamminga commented, "We are lowering our investment rating on ROST shares from Overweight to Neutral in view of what we believe may be increasingly negative data points around oil-driven economies--namely Texas. With 15% store base exposure to Texas, Ross Stores, the company, may experience softness in sales. More likely, however, we believe ROST, the shares, are likely to be negatively impacted by the optics of their exposure, therefore offering investors the potential for a better buying opportunity at a later date. In addition, we believe shares are fairly valued and valuation metrics are near peak and above average multiples, Looking ahead, management raised their guidance for the full year in November, but indicated that they remain cautious heading into what is expected to be a highly competitive and promotional holiday season; they report in late February."

For an analyst ratings summary and ratings history on Ross Stores, Inc. click here. For more ratings news on Ross Stores, Inc. click here.

Shares of Ross Stores, Inc. closed at $95.23 yesterday.

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