Wedbush analyst Morry Brown reiterated an Outperform rating and bumped his price target on Ross Stores, Inc. (NASDAQ: ROST) to $59.00 (from $58.00) following earnings, saying the pullback offers a rare attractive entry point.

Brown commented, "ROST shares appear set to trade down after 2Q EPS, based on (1) perceived underperformance relative to TJX and (2) the company’s (characteristically) conservative outlook for 2H. We are buyers on the weakness, as we see no shift in the key elements of the story. SSS of +4% were above plan and in line with TJX’s Marmaxx division (on both a YOY and two-year stack basis) and merchandise margins increased +25 bps (ahead of TJX’s flat, though TJX would have been up if not for FX). We believe the prospective sell-off presents investors with a rare entry point for ROST shares at a more attractive valuation versus recent history."

The firm's 2015/2016/2017 estimates move to $2.50/$2.83/$3.20 from $2.56/$2.89/$3.27 to reflect 2Q results modestly below our prior estimates and a slightly more moderate comp assumption for 2H.

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 $55.25 yesterday.