Discount retailers’ stocks are set to pop as consumers flock to cheaper options amid high inflation, Goldman Sachs says Goldman Sachs sees shares of Ross and Burlington Stores each rising by at least 20% over the next 12 months. The discount retailers are "defensively positioned" in a tough retail environment marked by high inflation and cost pressures. Goldman initiated coverage of the companies as it sees further weakening in the apparel sector. Retailers selling apparel are going through a tough period, in part as consumers try to cope with hot inflation, but Goldman Sachs said discounters Ross Stores and Burlington Stores shares should each jump by more than 20% over the next year. The investment bank initiated coverage of the companies with buy ratings in a note published late Monday. Ross shares hold the potential to reach $102 in the coming 12 months and Burlington could hit $183 in that same timeframe. The price targets envision a 24% rise in Ross stock and 24% advance for Burlington from Monday''s close. The shares were down during Tuesday''s session as part of a broader pullback in equities on concerns about tensions between the US and China over House Speaker Nancy Pelosi''s visit to Taiwan. "The outlook for the apparel sector continues to weaken, with rising industry inventory levels, pressures to consumer discretionary income, inflationary headwinds, and ongoing cost pressures that weigh on margins and returns," Goldman Sachs analyst Brooke Roach wrote in the research note.