Ross Stores price target raised to $142 from $136 at Bernstein

Bernstein analyst Aneesha Sherman raised the firm’s price target on Ross Stores to $142 from $136 and keeps an Outperform rating on the shares. The firm notes that Ross delivered its 4th consecutive beat, with a +14% EPS beat from strong traffic and margin recapture from freight. Second half of the year guide raised as assortment improves and low-income consumer spending grows from improving macro, Bernstein adds in a research note on Friday. With more trade-down traffic and more margin recapture to come in FY24, the quality compounding algo remains intact, and the firm remains a buyer.