Mavis Hui, an analyst from DBS, reiterated the Buy rating on Target (TGT – Research Report). The associated price target remains the same with $188.00.
Mavis Hui has given her Buy rating due to a combination of factors, including Target’s impressive financial performance and strategic initiatives. The company reported a significant year-over-year increase in adjusted EPS by 43%, surpassing market expectations, which was attributed to improved traffic recovery and gross margin enhancement. Additionally, Target’s revenue grew by 2.6% year-over-year, driven by the recovery in discretionary items and robust e-commerce growth.
Target’s focus on omni-channel growth, integrating online and offline sales, and enhancing same-day delivery services has positioned it well against rising market competition. The company’s efficient logistics network, utilizing physical stores as fulfillment centers, has resulted in significantly lower delivery costs, which could mitigate potential margin pressures. Despite challenges such as inflationary pressures and inventory management, Target’s strong customer loyalty and operational efficiencies support a positive outlook for future earnings growth. Consequently, Mavis Hui has set a target price of $188 per share, reflecting confidence in Target’s long-term growth prospects and effective risk management.
In another report released yesterday, CFRA also maintained a Buy rating on the stock with a $147.00 price target.
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