Collins Stewart Starts Ross Stores, Inc. (ROST) at Buy; Continues to Build its High-Quality Pack-Away Inventory
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Price: $228.99 --0%
Rating Summary:
28 Buy, 13 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 5 | New: 17
Rating Summary:
28 Buy, 13 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 5 | New: 17
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Collins Stewart initiates coverage on Ross Stores, Inc. (NASDAQ: ROST) with a Buy. PT $67.00.
Collins analyst says, "Ross Stores has sustained healthy top- and bottom-line momentum throughout FY11, and we believe management’s Q4 guidance is conservative given the company’s compelling merchandise assortment. ROST has built up its packaway inventory to around 40% of its total inventory. Pack-away inventories generally consist of higher-quality brands, which we expect to boost sales when placed in stores. ROST is well positioned to benefit as full-price retailers continue to combat sourcing cost inflation while budget-conscious consumers seek out value. We believe ROST’s build-up of high-quality pack-away inventory provides a meaningful opportunity for SSS growth, margin expansion, and upside to consensus EPS estimates in FY12. Shares have appreciated approximately 50% YTD, versus the S&P 500 index’s 3% decline and the RLX index up 2%. Despite the relative outperformance, we believe ROST shares still offer significant upside potential."
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 $46.25 yesterday.
Collins analyst says, "Ross Stores has sustained healthy top- and bottom-line momentum throughout FY11, and we believe management’s Q4 guidance is conservative given the company’s compelling merchandise assortment. ROST has built up its packaway inventory to around 40% of its total inventory. Pack-away inventories generally consist of higher-quality brands, which we expect to boost sales when placed in stores. ROST is well positioned to benefit as full-price retailers continue to combat sourcing cost inflation while budget-conscious consumers seek out value. We believe ROST’s build-up of high-quality pack-away inventory provides a meaningful opportunity for SSS growth, margin expansion, and upside to consensus EPS estimates in FY12. Shares have appreciated approximately 50% YTD, versus the S&P 500 index’s 3% decline and the RLX index up 2%. Despite the relative outperformance, we believe ROST shares still offer significant upside potential."
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 $46.25 yesterday.
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