UPDATE: Canaccord Genuity Downgrades Ross Stores and T.J. Maxx
Canaccord Genuity said in the report, "We believe earnings momentum is starting to slow for ROST and TJX. From Q1/09-Q3/11, both companies had beaten the high end of initial guidance by about 20%. Over the last two quarters, upside to guidance has averaged 7%-9%. Our Q2 and 2012 EPS estimates are below consensus. For ROST our forecasts of $0.75 for Q2 and $3.33 for 2012 are in line with guidance, versus consensus at $0.76 and $3.39, respectively. We forecast Q2 EPS of $0.50 for TJX, which is in line with guidance and $0.01 below consensus. Our FY13 estimate of $2.37 matches the high end of TJX's outlook and is $0.05 below consensus. We expect SSS growth to decelerate, and our full-year estimates for ROST and TJX represent the slowest rates of growth for both companies since 2008."
Canaccord Genuity maintains the following: TJX, $45 PT, currently trading at $39.85 ROST, $67 PT, currently trading at $59.50
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.