UBS upgraded Ross Stores and forecast about 8.5% annual revenue growth over two years, saying improvements across the business could help the retailer narrow its productivity gap with TJ Maxx.
On Monday, the bank moved its rating from neutral to buy and set a new price target of $315, up from $239. Its revenue projection is roughly 2.6 percentage points above the consensus estimate.
At year-end 2025, UBS put Ross' productivity gain at 24%; its figure for TJ Maxx was 44%, analyst Jay Sole said. The bank pointed to changes in merchandise selection, customer outreach and store operations as possible ways to narrow the difference.
Sole also expects same-store sales growth to persist beyond 2026.
