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What Analysts Predict for Target Stock

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Jun. 11 2019, Published 6:41 a.m. ET

Wall Street stays on sidelines

Target (TGT) stock got a substantial boost from its first-quarter earnings, which implies that positives are priced into the stock. Analysts estimate that Target’s top and bottom line will continue to rise in the coming quarters.

The expansion of digital fulfillment options, exclusive merchandise, and store remodeling are expected to support its comparable sales. Moreover, gradual improvement in margins and share repurchases are expected to support earnings. However, the recent uptrend in the stock and tough comparables could limit the upside in the stock and keep analysts on the sidelines.

Analysts suggest a target price of $88.20 per share, which is about 1.6% higher than its closing price of $86.85 on June 7.

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Rating summary

Of the 26 analysts providing recommendations on Target stock, 15 recommend a “hold,” and 11 analysts have a “buy” rating. In comparison, analysts covering Walmart (WMT) and Costco (COST) stocks recommend a “buy.”

We are impressed with the financial performance of these retailers and expect Target, Walmart, and Costco to continue to post healthy sales and earnings growth in the coming quarters. However, the high valuation owing to the recent uptrend in these stocks and tough YoY comparisons could restrict the upside.

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