Ross Stores is one of the best ways investors can get in on the off-price retail trade, Wells Fargo said. Analyst Ike Boruchow upgraded the stock to overweight, saying in a note to clients Tuesday that he sees upside to Wall Street’s estimates ahead. “Enthusiasm with regard to the company’s margin management versus expectations, and comfort with top-line demand, yields enthusiasm,” he wrote, noting that he expects the company’s negative revision pattern to come to a close. Boruchow expects improving fundamentals across the off-price sector due in part to growing inventory availability as consumers trade down. He also sees freight to reemerge as a margin tailwind as spot rates normalize. The analyst reiterated the bank’s recent naming of Burlington Stores as a top pick, noting he’s refraining from upgrading TJX Companies despite stable margins and its decent stock performance (down 8.9% this year). “Simply put, we believe BURL and ROST are the best ways to play our bullish off-price thesis,” he wrote, calling both companies “better recovery stories.” Boruchow upped Wells Fargo’s price target on Ross Stores to $110 from $90 a share, suggesting the stock could rally 26% from Monday’s close. Shares are down about 24% this year. The stock gained roughly 2% in premarket trading. — CNBC’s Michael Bloom contributed reporting
You May Also Like
Tech Turmoil Complicates Canada’s Policing of the Online World
Back in the spring my colleague Cade Metz, who covers artificial intelligence,…
- ReportWire
- November 26, 2022
The post-Merge Ethereum ecosystem needs privacy more than ever
Check out all the on-demand sessions from the Intelligent Security Summit here.…
- ReportWire
- December 16, 2022
The Best (And Worst) Places to Start a Career in 2023 | Entrepreneur
Despite big cities like New York and Los Angeles historically serving as…
- ReportWire
- July 5, 2023
GamesBeat Summit 2023: Why Hollywood and games is finally working out
Connect with top gaming leaders in Los Angeles at GamesBeat Summit 2023…
- ReportWire
- May 8, 2023