Cowen Remains Bullish as Ross Stores' (ROST) Comp Strength Drives Positive Traffic
Cowen reiterated an Outperform rating and $63.00 price target on Ross Stores, Inc. (NASDAQ: ROST) following the company's 4Q earnings report. ROST's 4Q comp of +4% easily beat the Street's +1.4% estimate. Comp strength was driven by positive traffic, demonstrating that share shifts to off-price continues, as well as higher basket size on higher UPT and higher AUR.
Analyst Oliver Chen commented, "ABC’s of Retail in Good Order & Prudent Exposure to Moderate Consumer. We're impressed strong comps (+4% vs. +10% on 2-yr) were driven by a healthy balance of traffic/ticket, merchandise margins were up in a tough backdrop & inventories tight. Packaway timing (-5c 4Q EPS & slight impact 1Q) causes modest GM pressure, but sales momentum likely to continue in '16, which will drive stock."
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 $56.23 yesterday.