UPDATE: Canaccord Genuity Downgrades Ross Stores, Inc. (ROST) to Hold; Valuation is Stretched

(Updated - May 21, 2012 9:13 AM EDT)

Canaccord Genuity downgraded Ross Stores, Inc. (NASDAQ: ROST) from Buy to Hold with a price target of $67.00.

Analyst, Laura Champine, said, "We believe earnings momentum is starting to slow for Ross Stores and The TJX Companies (NYSE: TJX). From Q1/09-Q3/11, both companies had beaten the high end of initial guidance by about 20%. Over the last two quarters, upside to guidance has averaged 7%-9%. Our Q2 and 2012 EPS estimates are below consensus...We forecast Q2 EPS of $0.50 for TJX, which is in line with guidance and $0.01 below consensus. Our FY13 estimate of $2.37 matches the high end of TJX’s outlook and is $0.05 below consensus...We expect SSS growth to decelerate, and our full-year estimates for ROST and TJX represent the slowest rates of growth for both companies since 2008."

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 $60.66 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• BofA sees Micron EPS topping $230 by FY30, calls peak fears overblown
• HomeTrust to acquire Blue Ridge Bankshares in $448M all-stock deal
• Yum! Brands (YUM) PT Lowered to $180 at Argus