Piper Jaffray Raises Estimate, PT On Ross Stores Following April Sales Release

Piper Jaffray is raising its price target and estimates on Ross Stores ROST following the release of April sales results. April same store sales increased 10% and FQ1 same stores sales increased 3% compared to our prior +2% estimate. It believes ROST benefited from favorable weather trends relative to competitors and the retailer's value proposition is resonating with consumers in light of rising gas prices. Management raised FQ1 EPS guidance to $1.47-$1.48 and Piper Jaffray is raising its FQ1 EPS to $1.48. Piper Jaffray believes the +3.0% same store sales increase in FQ1 on top of a +10% gain in the same period last year is indicative of the company's ability to post solid results despite difficult y/y comparisons. Further increases in gas prices and declines in consumer confidence could impact end demand, but Ross Stores could be a net beneficiary as the company's lower price points and value proposition could drive share gains. Piper Jaffray is raising its FQ1 EPS to $1.48 which is at the high end of management's revised guidance of $1.47-$1.48. For FQ2, it is raising EPS estimate from $1.21 to $1.25 as it expects near-term trends to remain strong. Piper Jaffray is raising its FY12 estimate from $5.12 to $5.31. Piper Jaffray raises its PT from $67 to $74 and has a Neutral rating on ROST ROST closed Thursday at $78.55