We maintain our 12-month price target of $138, based on 23.0x our FY 25 (Jan.) EPS estimate and slightly lower than the company’s 5-year average forward P/E multiple of 23.9x. We maintain our FY 25 and FY 26 EPS estimates of $6.00 and $6.40, respectively. ROST posts normalized Q1 EPS of $1.46 vs. $1.09, $0.11 above consensus estimates on revenues of $4.86B vs. $4.50B and $32M above estimates. Comparable store sales increased 3% Y/Y while total revenues increased 8%. Management said that Accessories and Children were the best-selling categories while California and the Pacific Northwest were the strongest regions. The company also stated that dd’s Discounts outperformed Ross as customers responded well to better value. Inventory was up 10% Y/Y with average store inventory up 4% and in line with sales growth. ROST guided for comp store sales up 2% to 3% and EPS of $5.98 at the high point. Although we continue to like ROST’s business model and execution, valuation is full in our opinion and we remain neutral.