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Analysts Revise Ross Stores’ Stock Price Target after Fiscal 4Q17

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Current ratings

On March 8, 2018, Ross Stores (ROST) stock was rated a “buy” by 17 out of the 23 analysts covering the stock (74%). The stock was rated a “hold” by six analysts. No analysts currently have “sell” recommendations on Ross Stores stock.

Following the company’s fiscal 4Q17 results, which it announced after the market closed on March 6, many analysts revised their price targets for its stock.

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Price targets

On March 7, Cowen and Company raised its price target for Ross Stores stock to $85 from $78. Jefferies increased its price target to $73 from $66. BMO Capital revised its price target to $78 from $71.

In contrast, Deutsche Bank lowered its price target to $92 from $95, and Suntrust Robinson cut its price target to $93 from $96.

On March 8, the 12-month average price target for Ross Stores stock was $87.75. This price estimate reflects an upside potential of 16.7%. As mentioned in Part One of this series, Ross Stores stock had fallen 6.3% on a year-to-date basis as of March 8.

Store growth plans

As at the end of fiscal 2017, Ross Stores operated 1,409 Ross Dress for Less stores in the United States, the District of Columbia, and Guam. The company also operates 213 dd’s Discounts stores. 

In fiscal 2018, the company plans to open 100 new stores, including 75 Ross Dress for Less stores and 25 dd’s Discounts stores. This plan excludes the company’s intention to close or relocate about ten older stores. Over the long term, Ross Stores sees the opportunity to open up to 2,000 Ross Dress for Less stores and 500 dd’s Discounts stores.

We’ll look at the company’s valuation in the last part of this series.

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