Join        Login             Stock Quote

Ross Stores (ROST) Upgraded To 'Buy' By Deutsche Bank

 January 09, 2013 02:33 PM

(By Balachander) Ross Stores Inc. (NASDAQ: ROST) shares were upgraded to "buy" from "hold" by Deutsche Bank (DB) based on four themes.

The bank, which maintained its $66 price target, said the upgrade is based on a flexible business model that should deliver better-than-expected sales and EPS growth in an uncertain environment.

DB also said comps should improve through the year as comparisons ease and the bank models 8 percent average annual square footage growth due to market share gain potential.

The bank also cited the upgrade to recent underperformance despite last week's pop, which leads to a compelling valuation.

[Related -Ross Stores, Inc. (ROST): A Look At Multiple Long-Term Growth Catalysts]

ROST flexible inventory model, which includes an emphasis on pack-aways combined with inventory liquidity supports comp and margin visibility by enabling stores to constantly have strong merchandise sets at compelling prices, DB said.

The company has stores in only 30 states, with about half of its roughly 1,200 stores in California, Florida and Texas, making the chain one of the few regional, underpenetrated large cap retailers in the U.S., the bank wrote.

DB believes they should be able to double their store count over time as the off price model continues to gain market share.

The stock, which has been trading in the 52-week range of $50.01 to $70.82, inched up 0.14 percent to trade at $56.90 on Wednesday.

iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageLong-term Relationships and Credit Scores

Unlike many commentators, I tend to think credit scores are a good read on...

article imageIn Defense Of Rolling Return Charts

Robeco’s Lukas Daalder has a bit of an issue with rolling-performance graphics. Bashing a recent chart of read on...

article imageThe S&P 500’s Worrisome Downturn In Drawdown

Last Friday I reviewed some of the bearish signals that were casting dark shadows across the US stock read on...

article imageADP: Private-Sector Employment Rises A Solid 200k In September

The pace of growth for private-sector employment picked up in September, according to this morning’s ADP read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.