Analysts’ Recommendations for Target Stock
Most of the analysts covering Target (TGT) recommend a “hold.” Sluggish sales and a challenging outlook will likely weigh on the company’s performance.
Target stock will likely remain under pressure due to increased competition, which will hurt its store traffic and result in lower sales.
Target (TGT) is witnessing sluggish sales, and Amazon’s (AMZN) latest bid to acquire Whole Foods (WFM) will likely create further challenges for this mass merchandiser.
Despite a couple of analysts downgrading Costco (COST) stock after Amazon (AMZN) announced its bid to acquire Whole Foods (WFM), the company remains analysts’ top pick among its peer group.
Walmart (WMT) continues to buy small and in-vogue brands to strengthen its position in the digital space.
There’s no denying that Amazon’s (AMZN) acquisition of Whole Foods (WFM) could have a significant impact on grocers’ margins and result in store closures.
Stock prices of grocers and mass merchandisers saw sharp falls after Amazon’s announcement that it has entered a definitive agreement to acquire Whole Foods (WFM).
Analysts covering Target (TGT) are maintaining a neutral outlook on the stock as the risk reward has balanced for the moment.
Last quarter, Target’s comps fell 1.3%, with an 0.80% decline in traffic. Walmart (WMT) and Costco (COST), however, are uniquely positioned, bucking the trend.
Target’s management is calling for a $200.0 million fall in EBIT (earnings before interest and tax) for fiscal 2Q17 due to lower sales and increased SG&A.
Target (TGT) recently announced a 3.3% hike in the quarterly dividend to $0.62 from $0.60. In fiscal 2016, it returned $1.3 billion to shareholders in the form of dividends.
On June 1, 2017, Walmart stock closed at $79.81—almost at par with analysts’ 12-month target price of $79.94.
Walmart started testing its new online delivery service in three of its stores. It’s getting an overwhelming response from customers and associates.
Most analysts had a positive outlook on Costco stock. Among the 31 analysts covering Costco, ~71% recommended a “buy” and 29% recommended a “hold.”
As of May 31, Costco stock was trading at $180.43, which is close to its 52-week high of $183.18. It also trades at a premium to its peer group average.
Costco continued to report strong sales. The company’s comparable-store sales, or comps, rose 4.1% for the four-week period ending on May 28.
The majority of analysts rating Costco (COST) remain upbeat on the stock, given the company’s exceptional performance amid a tough operating environment.
Costco Wholesale (COST) reported a healthy top-line growth that significantly boosted its margins in fiscal 3Q17.
Costco’s (COST) fiscal 3Q17 sales of $28.9 billion came in ahead of Wall Street’s estimate, thanks to the rise in the average transaction and shopping frequency.
Analysts remain upbeat about Costco stock since the company managed to remain immune from most of the headwinds plaguing retailers.