Target Corporation: Strategic Omni-Channel Growth and Cost Efficiency Drive Buy Rating

DBS analyst Mavis Hui reiterated a Buy rating on Target (TGT – Research Report) today and set a price target of $135.00.

Mavis Hui has given his Buy rating due to a combination of factors including Target’s strategic focus on omni-channel growth and improved delivery efficiency. Despite a slight decline in revenue, Target’s comparable sales have shown positive growth, driven by a recovery in holiday season traffic. The company’s investment in integrating online and offline sales, along with partnerships with major brands like Apple and Disney, positions it well for future growth.
Target’s use of its physical stores as logistics centers has led to significantly lower delivery costs compared to traditional models, enhancing its competitive edge. Although there are challenges such as inflationary pressures and inventory movement issues, Target’s strong customer loyalty and operational efficiency improvements provide a positive outlook for earnings growth. The Buy rating is supported by Target’s long-term growth prospects and efficient cost management, with a target price set at USD 135 per share.

In another report released yesterday, Guggenheim also maintained a Buy rating on the stock with a $115.00 price target.

Based on the recent corporate insider activity of 57 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of TGT in relation to earlier this year.