Citi Upgrades Ross Stores to Hold, Increases PT to $83 (ROST)

Citi upgraded its rating on Ross Stores ROST from Sell to Hold. At the same time, Citi increased its price target from $63 to $83 in a research report published today. In the report, Citi states, "We are taking our Sell rating off ROST and moving to a Hold. We remain cautious on the off-price sector and believe above average returns on capital will recede as capacity ramps across the channel and choice inventory tightens commensurate with an economic recovery. That said, we've underestimated the positive impact of ROST's packaway inventory, which remains at 48% of total inventory to end April (vs 33% LY) following a significant build to end 2010." In today's trading, Ross Stores added 0.78% to its value and is currently trading at $78.80.