Ross Stores (ROST) Remains CL-Buy at Goldman

Goldman Sachs Friday maintained a Conviction Buy on Ross Stores, Inc. (NASDAQ: ROST) with a modified price target of $84.00 (from $87.00). Comments follow disappoint Q3 results. Analyst Stephen Grambling sees opportunity beyond "near-term noise."

"Although ROST's results failed to meet elevated expectations and raised concern over a softer comp (vs. expectations and peers), the company continues to generate the highest ROICs in our coverage with a significant growth opportunity ahead as it expands from 1,285 stores today to 2,000+ long-term. In addition, with shares indicating mid-$70s pre-open, valuation is undemanding at a 5% free cash flow yield that is growing double-digits. On a multiple basis, ROST is trading at 9.3X our downwardly revised NTM EV/EBITDA, below "value" peers at 9.6X. With the long-term story unchanged, we maintain our CL-Buy on the correction," said Grambling.

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 $80.26 yesterday.

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