According to StreetInsider, Ross Stores shares fell 1.2% in premarket trading on Monday following a downgrade by Wells Fargo.

Analyst Ike Boruchow has downgraded the stock to 'equal weight,' with a target of $120, down 11% from his previous objective of $135 when it was 'overweight.' On Friday, the stock closed at $114.28.

The analyst emphasizes the growing concern about the low-end consumer (where ROST plays a larger role than any other name covered by Boruchow). Boruchow believes the stock is properly valued.Ross Stores Reports Second Quarter Earnings, Provides Third Quarter  Guidance | Business Wire

Ross Dress for Less is a discount clothes and home fashion chain based in the United States.

Ross reported a net profit of $385 million on sales of $4.6 billion for the third quarter ended October 30, with comparable store sales up a solid 14%.

On a 12.5% increase in comparable store sales, the firm forecasts earnings per share in the fiscal year 2021 to be $4.70 at the midpoint of its guidance range. Even though consumer demand remained robust, it reported in November that industry-wide supply chain bottlenecks were rising.

It said it was on target to buy back $650 million in shares in the current fiscal year.