The firm said it slashed its rating on the off-price apparel and home furnishing chain based on its belief "consensus estimates are too high."
"The stock has benefitted from a flight to quality, and we do not expect Ross Stores to live up to expectations in [the second half of the year] and 2015," Canaccord said,
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The firm also said Ross Stores shares "appear overvalued" due to the firm's long term growth projections.
Separately, TheStreet Ratings team rates ROSS STORES INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate ROSS STORES INC (ROST) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows low profit margins."