UBS's analyst Jay Sole highlighted that Ross Stores is enhancing its productivity, which is expected to narrow the gap with competitor TJ Maxx. The investment bank raised its price target for Ross shares from $239 to $315, indicating a potential upside of 37% from the recent closing price.
Sole expressed confidence that Ross's same-store sales growth momentum will continue beyond this year, driven by strategic changes in merchandising, marketing, and in-store operations. Since Conroy's appointment in February 2025, Ross's productivity has increased by 24%, although TJ Maxx's has risen by 44%.
UBS anticipates that Ross will achieve a compound annual revenue growth rate of approximately 8.5% over the next two years, surpassing the market's consensus estimate by 260 basis points. Currently, 14 out of 21 analysts covering Ross have a 'buy' or 'strong buy' rating, while the stock has seen a 4% decline over the past three months