UBS Expects Ross to Narrow Productivity Gap With TJ Maxx

UBS expects off-price retailer Ross Stores to narrow its productivity gap with TJ Maxx, a change the bank says could support stronger same-store sales and revenue growth over the next two years.

UBS upgraded Ross to buy from neutral Monday, Oct. 26, and raised its price target to $315 from $239. The revised target represented 37% upside from Friday's close.

UBS analyst Jay Sole said Ross' productivity had risen 24% by the end of 2025, compared with a 44% increase at TJ Maxx. The bank cited potential improvements in merchandising, marketing and store operations as ways Ross could close the gap.

Sole said Ross' recent same-store sales growth momentum should continue beyond 2026. “The answer is yes,” he said.

UBS projected Ross revenue would grow at an annualized rate of about 8.5% over the next two years, roughly 260 basis points above consensus revenue-growth estimates. Fourteen of the 21 analysts covering Ross had buy or strong buy ratings, while seven had hold ratings. Ross shares had fallen 4% over the previous three months.