'Ross Stores, Inc. (ROST) Beating lofty expectations'; PT Raised at Bernstein SocGen

Bernstein SocGen Group analyst Aneesha Sherman raised the price target on Ross Stores, Inc. (NASDAQ: ROST) to $230.00 (from $200.00) while maintaining a Market Perform rating.

The analyst commented: "Beating lofty expectations; Expectations were high into this print, and Ross delivered, with a 17% comp (vs. low/mid teens bar and 7-8% guide) and margin beat. Mgmt’s confident tone will likely push up numbers beyond FY guide, as the market expects more beats and raises through the year. We like the operational change and, even at a ~30x multiple, we believe the stock is fairly priced for this acceleration in earnings growth.

Operational and culture changes are real, and warrant the premium multiple. We like the push towards stronger marketing, broader assortment, new buying initiatives, and better store experience, all underpinned by a cultural shift towards more empowerment and risktaking under the new CEO, which we think are reflected in the stock’s premium multiple."

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