Jun. 23 at 4:07 PM
$ROST Wells Fargo downgraded Ross Stores
to equal weight from overweight, despite a strong performance over the past year. Analyst Ike Boruchow kept his price target at
$245, implying a 3.4% upside from Monday’s close.
Boruchow noted that while CEO James Conroy has done a great job improving the marketing, merchandising and stores, he expects the discount retail sector to slow drastically, with the low-end consumer continuing to worsen.
The analyst also noted that the current flow of inventory is raising worries.
“While execution under CEO Conroy has been essentially flawless, the risks of 1) low-end demo, 2) tough compares ahead, and 3) building inventory push us to the sidelines.” Boruchow said in a note to clients Tuesday.
