Analysts remain neutral on TGT and WMT stock
The graph below shows that the majority of analysts maintain a “neutral” outlook on Target (TGT) and Walmart (WMT) stock. As for Target, the company’s weak holiday outlook and pressure on earnings are keeping analysts on the sidelines. Target has taken several strategic measures that are expected to drive the company’s sales higher in the coming quarters. The company has managed to turn around its sales performance thanks to its growing digital sales, expanded exclusive offerings, and low pricing.
However, increased investments in price, growing competition from Amazon (AMZN), and higher digital fulfillment charges have taken a toll on its margins, and thus its profitability. Analysts expect the company’s bottom line to fall, thus it seems they will be cautious until the company’s growth initiatives meaningfully impact its earnings.
About 70% of the analysts recommend a “hold” on Target stock. 15% have a “buy” rating, and an equal number of analysts suggest a “sell.” Meanwhile, Target stock closed at $62.67 on December 14, which is about 6% higher than the analyst target price of $59.01 per share.
Meanwhile, about 55% of the analysts suggested a “hold” on Walmart stock. 42% provided a “buy” rating and 3% maintained a “sell” recommendation. Moreover, analysts have a target price of $100.73 per share on Walmart stock, which implies an upside of 3% to its closing price on December 14.
Analysts remain upbeat on Costco
Most of the analysts covering Costco (COST) stock maintain a positive stance. About 62% of the analysts provided a “buy” rating and 38% suggested a “hold.” Notably, given the stock’s strong run recently, Costco is trading 1.6% higher than the analysts’ target price of $185.21 per share.