Oppenheimer Reiterates Ross Stores Perform Rating

Oppenheimer has published its company update yesterday on Ross Stores ROST following in-line 3Q results reported by the company. ROST had FY3Q10 EPS of $1.02 vs. Oppenheimer/consensus estimates of $1.01. Revenues were 1.874B, a 7% increase on a 3% comp vs. 8% a year ago. Oppenheimer writes, "Although we're impressed by ROST's positioning and execution strategy, shares appear fairlyvalued at current levels (14x our FY11E vs. historical avg of 12x) given difficult upcoming compares, limited near-term operating margin upside, increasingly competitive retail environment, and upcoming manufacturing/freight cost pressures. We continue to believe access to quality inventory is not an issue given ROST's strong buying organization." ROST closed Thursday at $63.45.