TD Cowen upgrades Ross Stores, sees Q2 same-store sales beat

TD Cowen analyst John Kernan upgraded Ross Stores to Outperform from Market Perform with a price target of $128, up from $113. The analyst views the company’s Q2 same-store sales guidance as conservative, saying Ross is “getting sharper on price points to reflect better branded values for its customers.” Consensus estimates are underestimating the company’s margin recovery due to factors such as supply chain cost deflation and improving store productivity, the analyst tells investors in research note. The firm sees Ross beating Q2 same-store sales guidance and raising its annual earnings outlook.