Ross Stores stock draws UBS bullish call on productivity plan

UBS upgraded Ross Stores from Neutral to Buy on Monday, October 26, and raised its price target from 239 to 315 US dollars. CNBC reported that analyst Jay Sole sees scope for CEO James Conroy's strategy to improve productivity and support continued comparable-store-sales growth.

The investment case rests on the gap between Ross Stores and TJ Maxx. UBS said the two retailers had broadly similar store productivity in 2017, but by the end of 2025 productivity had risen 24 percent at Ross Stores versus 44 percent at TJ Maxx. The bank believes investors underestimate how much a narrower gap could lift comparable sales in fiscal 2027 and beyond.

UBS identified three operating levers: stronger merchandise and brand selection, better in-store execution and more effective marketing. Conroy joined Ross Stores in February 2025, and the bank sees his management approach as a potential catalyst for improving store economics. The strategy requires execution, however, because higher marketing and operating investment must translate into stronger traffic, sales and earnings.

UBS expects Ross Stores revenue to grow at a compound annual rate of 8.5 percent over the next two years, about 260 basis points above the Street consensus cited by CNBC. The bank also expects stronger comparable-store sales to drive upward earnings revisions. For investors, the next test is whether the retailer can sustain recent sales momentum while closing the productivity gap with its larger off-price rival.

The real-time quote of Ross Stores stock was 207.55 euros on Lang & Schwarz at 2:34 p.m. CET on Tuesday, November 3, 2026.

US retail shares remain sensitive to expectations for consumer demand, margins and earnings revisions. See current S&P 500 market reports for the broader market setting.

For more context, read more news and analyses on Ross Stores stock.

Source: CNBC.