UPDATE: Canaccord Genuity Downgrades Ross Stores and T.J. Maxx

According to a research report published this morning, Canaccord Genuity has downgraded Ross Stores ROST and T.J. Maxx TJX from Buy to Hold. 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