Ross Stores (ROST) Analyst Maintains Market Perform Rating with $150 Price Target

Telsey Advisory Group maintains "Market Perform" rating for Ross Stores (ROST) with a $150 price target. The rating reflects the group's ongoing confidence in the company's market position. Analysts have raised and lowered price targets in recent months, with an average target of $151.62, indicating an upside of 3.18% from the current price.

Ross Stores (NASDAQ: ROST) has seen a significant update in its analyst rating and price target from Telsey Advisory Group. The investment research firm has raised its price target (PT) for Ross Stores to $150, while maintaining its "Market Perform" rating. This change comes ahead of the company's second-quarter earnings report, which is expected to be released soon.

Telsey Advisory Group's decision to raise the PT for Ross Stores reflects the firm's belief in the company's ongoing financial health and its ability to deliver strong earnings. The firm's current price target of $150 is higher than the consensus price target of $159.06, as reported by MarketBeat [1].

Ross Stores has been a focus of analysts' attention due to its recent financial performance and strategic moves. The company has seen an increase in institutional investment, with various funds and investment management firms enhancing their stakes in the retailer. Connor Clark & Lunn Investment Management Ltd., for instance, invested $9.35 million in Ross Stores, acquiring 73,163 shares [1].

The company's financial health is further highlighted by its recent dividend announcement. Ross Stores declared a quarterly dividend of $0.405 per share, reflecting a 1.1% yield and a payout ratio of 25.59% [1]. This move indicates the company's commitment to sharing its profits with shareholders.

The options market is pricing in a potential 5.6% move in either direction following the earnings announcement, slightly higher than the historical average movement of 4.8% [2]. This indicates a level of uncertainty around the company's earnings guidance, which UBS anticipates to be modest, with a potential earnings beat of approximately 2 cents per share compared to Wall Street’s expectation of $1.53 per share [2].

Ross Stores' strategic financial maneuvers, such as entering into a new $1.3 billion senior unsecured revolving credit facility, also reflect its commitment to maintaining a strong financial position [2]. This facility, effective until June 2030, includes a $300 million sublimit for standby letters of credit and allows for an increase of up to $700 million, pending lender commitment.

In summary, Telsey Advisory Group's decision to raise the PT for Ross Stores to $150 while maintaining its "Market Perform" rating is a reflection of the company's strong financial health and strategic moves. Investors should closely monitor the company's upcoming earnings report and analyst reactions to gauge its future performance.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-connor-clark-lunn-investment-management-ltd-invests-935-million-in-ross-stores-inc-nasdaqrost-2025-08-12/
[2] https://za.investing.com/news/analyst-ratings/ross-stores-stock-holds-steady-ahead-of-q2-earnings-ubs-says-93CH-3837074