Ahead of the Bell: Ross Stores gains after Lehman upgrade

Lehman Brothers analyst Jeff Black raised Ross to "Overweight" from "Equal Weight" in a note to investors. The stock added $1.14, or 3.5 percent, to $33.85 in the early session.

Black said Ross's 2008 guidance of 8 percent to 9 percent sales growth is "conservative," with the company poised to benefit from tax rebate checks.

The analyst said the company's inventories are well managed and should be lower by the end of the quarter.

Black raised his price target on the San Jose, Calif., company to $40 from $35, implying he expects the stock to rise more than 22 percent in the next year from their Thursday close at $32.71.