Wedbush Raises Price Target on Ross Stores (ROST) Following a 4Q Beat-And-Raise
Wedbush reiterated an Outperform rating on Ross Stores, Inc. (NASDAQ: ROST), and raised the price target to $63.00 (from $61.00), following the company's 4Q earnings report. ROST reported 4Q EPS of $0.66 on SSS of +4%, above consensus expectations of $0.64. Management guided FY16 EPS to a range of $2.59- $2.71 compared to consensus of $2.75, based on a conservative SSS range of 1- 2%.
Analyst Morry Brown commented, "2016 setup to be another beat-and-raise year: expect strong SSS trends with solid flow through to the bottom line despite wage headwinds. We see no changes to the ROST story following strong 4Q trends and solid 2016 guidance. The company placed guidance slightly below consensus on a conservative +1-2% comp plan. We calculate roughly $0.10 of EPS upside per point of upside to SSS guidance, which would place EPS around $2.81 (comfortably ahead of the current $2.75 consensus) from a +3% comp increase. We expect consensus numbers to steadily drift higher as the year goes on, and reiterate our OUTPERFORM."
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.