ROST - Analysts defend bullish outlook on Ross Stores after post-earnings plunge

Despite a deep dive for shares, after earnings many on Wall Street are not stepping away from “Buy” ratings on Ross Stores (NASDAQ:ROST). Shares of the Dublin, California-based discount retailer cratered in Friday's pre-market hours, falling by as much as 27% after offering an inauspicious first quarter earnings report on Thursday evening. The company noted significant deceleration in comparable store sales, pressured margins, and ballooning inventory in the quarter, prompting significant cuts to guidance as problems persist. Nonetheless, both Bank of America and Morgan Stanley retail analysts reiterated their long-term bullishness on the stock. “The sales miss was disappointing versus TJX Companies (TJX), but we still view Ross Stores (ROST) as well positioned to benefit from trade-down and gain market share as consumers seek value in the coming quarters,” Bank of America analyst Lorraine Hutchinson wrote to clients. “We see room for earnings improvement on stronger sales and [gross margin],

For further details see:

Analysts defend bullish outlook on Ross Stores after post-earnings plunge