6 Mar

Target: How Analysts Reacted to Its Q4 Results

WRITTEN BY Amit Singh

Higher target price

Target’s (TGT) better-than-expected fourth-quarter performance and upbeat comps and earnings guidance led several analysts to raise their target price on the stock. Credit Suisse increased its target price on Target stock to $85 per share from $79. J.P. Morgan raised its target price to $81 from $75. Jefferies increased its target price to $84 from $79.

Target: How Analysts Reacted to Its Q4 Results

Target’s expanded delivery options, new and exclusive products, store remodeling, opening small-format stores, and right pricing are expected to drive the traffic at its stores and on its digital platform. Cost savings are expected to support the operating income. Target’s bottom line is expected to sustain the momentum in fiscal 2019 despite facing tough comps, which is impressive. Continued comps growth and share repurchases are expected to drive high-single-digit growth in Target’s bottom line.

Analysts’ ratings and target price

Among the 25 analysts tracking Target, 15 recommended a “hold,” nine recommended a “buy,” and one recommended a “sell.” Weakness in Target’s margins and more competition in the grocery business have kept analysts on the sidelines. Analysts also maintained a neutral outlook on Walmart (WMT) stock. However, analysts have a “buy” rating on Costco (COST) stock.

Analysts have a consensus target price of $84.97 per share on Target stock, which implies an upside potential of 11.8% based on its closing price of $76 on March 5.

Latest articles

On October 17, Cannabis 2.0 legalized edibles, beverages, and concentrates in Canada. As the country waits for the benefits, is Cannabis 3.0 next?

Prohibition Partners expects that by 2024, the legal cannabis market could reach $103.9 billion and the medical cannabis market could reach $62.6 billion.

The cannabis sector was trading in the red today. MKM Partners lowered its revenue estimates for Canopy Growth (CGC) (WEED) and Aurora Cannabis (ACB).

Ford plans to unveil its crossover SUV, the Mach-E, on November 17. Ford committed $11.5 billion toward the electrification of its fleet through 2022.

This week is important for the cannabis sector, as Canopy Growth and Aurora Cannabis are both set to report their earnings results on November 14.

Currently, 33 states and Washington, D.C., have legalized medical cannabis, but it's illegal in Kansas. Even having a small amount is considered a crime.