Deutsche Bank Reiterates Buy Rating, $66 PT on Ross Stores Ahead of 4Q12 Reports

In a report published Monday, Deutsche Bank analyst Mike Baker reiterated a Buy rating and $66.00 price target on Ross Stores

. In the report, Baker noted, “ROST reports 4Q12 on March 21. Results have already been preannounced at $1.06-$1.07. We are in line with consensus at $1.07 and expect an in line result. Comps were reported at 5%. Our estimate includes 45 bps of GM improvement from merchandise margin gains and leverage from the extra week. ROST has also already given 1Q13 and 2013 guidance, as well as sales for the first month of 1Q13. Therefore the key catalyst in our view will be any update on March trends as well as any changes to the 1Q13 and 2013 plan. We reiterate our Buy rating as we believe trends should improve from February (Easter adjusted) and we think the current risk reward is favorable.” Ross Stores closed on Friday at $56.28.