UPDATE: Sterne Agee Upgrades Ross Stores to Buy on Favorable Set-Up

In a report published Thursday, Sterne Agee analyst Ike Boruchow upgraded the rating on Ross Stores ROST from Neutral to Buy, and raised the price target from $72.00 to $75.00.

In the report, Sterne Agee noted, “We are upgrading shares of ROST to Buy from Neutral. With a conservative outlook for the remainder of the year and a valuation that appears cheap relative to rival TJX and the group, the stock sets up favorably from here (room for multiple expansion and earnings upside). Longer-term, a significant footage opportunity (less than 50% penetrated to target) and one of the most consistent models in retail give us confidence in 10-15% annual EPS growth (or $6.50+ in earnings power).”

Ross Stores closed on Wednesday at $63.53.