Target Corp. Downgraded to “Buy” at ISI Group (TGT)
Target Corp. (NYSE:TGT) was downgraded by investment analysts at ISI Group from a “strong-buy” rating to a “buy” rating in a note issued to investors on Thursday, TheFlyOnTheWall.com reports. They currently have a $70.00 price objective on the stock. ISI Group’s price objective would suggest a potential upside of 6.87% from the stock’s previous close.
The analysts wrote, “We continue to believe doubling of FCF in 2014 will drove buybacks to $3bn, while Canada will begin generating positive EBITDA, a swing of $500m. That said, traffic pressures in the U.S. are likely to keep comps subdued until 2014 when mobile initiatives gain traction or margin risks will rise. Target’s results looks more like Walmart, so while we believe it should get a slight premium (given Canada still depressed, better sales upside optionality, FCF outlook), the multiple is more likely to stay under 14x.”
Target Corp. (NYSE:TGT) traded down 1.02% on Thursday, hitting $64.83. 3,660,435 shares of the company’s stock traded hands. Target Corp. has a 1-year low of $58.01 and a 1-year high of $73.50. The stock has a 50-day moving average of $71.16 and a 200-day moving average of $68.73. The company has a market cap of $41.602 billion and a P/E ratio of 15.39. Target Corp. also was the recipient of unusually large options trading on Tuesday. Investors purchased 7,393 call options on the stock. This is an increase of approximately 291% compared to the typical volume of 1,889 call options.
Target Corp. (NYSE:TGT) last released its earnings data on Wednesday, August 21st. The company reported $1.19 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.96 by $0.23. The company had revenue of $17.12 billion for the quarter, compared to the consensus estimate of $17.26 billion. During the same quarter last year, the company posted $1.06 earnings per share. Target Corp.’s revenue was up 2.0% compared to the same quarter last year. Analysts expect that Target Corp. will post $4.33 EPS for the current fiscal year.
A number of other analysts have also recently weighed in on TGT. Analysts at Robert W. Baird downgraded shares of Target Corp. from an “outperform” rating to a “neutral” rating in a research note to investors on Wednesday. They now have a $68.00 price target on the stock, down previously from $76.00. Separately, analysts at Susquehanna downgraded shares of Target Corp. from a “positive” rating to a “neutral” rating in a research note to investors on Tuesday. They now have a $73.00 price target on the stock, up previously from $55.00. They noted that the move was a valuation call. Finally, analysts at JPMorgan Chase & Co. downgraded shares of Target Corp. from an “overweight” rating to a “neutral” rating in a research note to investors on Thursday, August 8th. They now have a $74.00 price target on the stock.
Three analysts have rated the stock with a sell rating, twelve have issued a hold rating, ten have given a buy rating and one has given a strong buy rating to the stock. Target Corp. has an average rating of “Hold” and a consensus price target of $72.26.
Target Corporation (NYSE:TGT) operates in three segments: U.
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