09:00 AM EDT, 05/23/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our 12-month price target by $12 to $138, based on 23x our FY 26 (Jan.) EPS estimate and slightly lower than ROST's five-year average forward P/E multiple of 23.7x. We lower our FY 26 and FY 27 EPS estimates by $0.50 to $6.00 and $0.35 to $6.40, respectively. ROST posted normalized FQ1 EPS of $1.47 vs. $1.46, $0.03 above consensus estimates on revenues of $4.98B vs. $4.86B, $29M above estimates. Comparable store sales and operating margin were flat in FQ1, and the company guided for Q2 comparable sales to be flat to up 3%. ROST guided for FQ2 EPS between $1.40 and $1.55 compared to $1.59 in FQ2 in the prior year. Management expects a $0.11 to $0.16 EPS impact from the "announced tariffs." Merchandise margin declined 45 bps in FQ1 due to higher ocean freight and the initial impact of tariffs. We lower our opinion on full valuation and headwinds from tariffs, which management sees as a clear risk. We continue to expect ROST to perform well but see little value due to elevated multiples in off-price.