Mizuho Securities analyst David Bellinger has maintained their neutral stance on TGT stock, giving a Hold rating today.
TipRanks Black Friday Sale
- Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
David Bellinger has given his Hold rating due to a combination of factors affecting Target’s current performance and outlook. The company’s recent quarterly results were underwhelming, with a decline in revenues and earnings per share compared to the previous year. Despite some positive developments, such as improvements in digital operations and a partnership with ChatGPT for enhanced shopping experiences, these were not sufficient to offset the overall challenges.
Target’s management has maintained a positive tone, highlighting minor successes, but the volatility in monthly sales trends and the impact of product markdowns on gross margins remain concerns. Additionally, while there are plans for significant capital expenditures to boost digital and merchandising operations, the anticipated benefits are not immediate. Consequently, the earnings guidance has been adjusted to the lower end of the range, reflecting continued pressures in the near term. These factors collectively contribute to the Hold rating, as the potential for recovery is present but not yet compelling enough to warrant a more favorable recommendation.
Bellinger covers the Consumer Cyclical sector, focusing on stocks such as Chewy, CarMax, and Home Depot. According to TipRanks, Bellinger has an average return of 6.0% and a 52.85% success rate on recommended stocks.
In another report released today, TD Cowen also maintained a Hold rating on the stock with a $105.00 price target.