ROST - Ross Stores slips after Cowen warns profit expectations are too high

Cowen lowers its rating on Ross Stores (NASDAQ:ROST) to Market Perform from Outperform on concerns that margin estimates are too high. Analyst John Kernan: "We remain constructive on long-term market share opportunity, but consensus estimates underestimate product cost inflation, supply chain inflation, and wage inflation into FY22, which is likely to pressure gross margin on stimulus led sales comparisons." The firm assigns a price target of $109 on ROST vs. the average analyst price target of $137.97. Consensus marks for Ross Stores (ROST) EPS mainly indicate concerns on Q1 profit headwinds.

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Ross Stores slips after Cowen warns profit expectations are too high