Target Downgraded to Underperform at Zacks (TGT)
Target (NYSE:TGT) was downgraded by Zacks from a “neutral” rating to an “underperform” rating in a research note issued to investors on Friday. They currently have a $54.00 price target on the stock. Zacks‘s price objective indicates a potential downside of 9.26% from the stock’s previous close.
Zacks’ analyst wrote, “Target’s troubles remain far from over. The company continues to reel under the effects of the massive data breach. Moreover, the company’s tepid foray into the Canadian market, weak e-commerce sales and subsequent dismal quarterly performances has put it on back foot. As a result, management provided a cautious outlook for the second quarter as well as for the fiscal given the near-term challenges. Management expects pressured operating margins and comps triggering a downtrend in the Zacks Consensus Estimate. Though the company has diverted resources to enhance domestic and online sales as well as to improve Canadian operations, but it will prove to be a time consuming affair. Therefore, we downgrade our long term recommendation on the stock to Underperform.”
A number of other analysts have also recently weighed in on TGT. Analysts at Morgan Stanley initiated coverage on shares of Target in a research note on Monday, June 23rd. They set an “underweight” rating and a $60.00 price target on the stock. Separately, analysts at BMO Capital Markets cut their price target on shares of Target from $75.00 to $65.00 in a research note on Tuesday, June 3rd. Finally, analysts at Janney Montgomery Scott reiterated a “fair value” rating on shares of Target in a research note on Thursday, May 22nd. They now have a $54.00 price target on the stock, down previously from $67.00. Six investment analysts have rated the stock with a sell rating, eight have given a hold rating and seven have issued a buy rating to the stock. The stock has an average rating of “Hold” and a consensus target price of $63.38.
Target (NYSE:TGT) traded up 1.26% on Friday, hitting $59.51. The stock had a trading volume of 3,014,443 shares. Target has a one year low of $54.66 and a one year high of $73.50. The stock has a 50-day moving average of $57.52 and a 200-day moving average of $59.30. The company has a market cap of $37.712 billion and a P/E ratio of 19.85.
Target (NYSE:TGT) last announced its earnings results on Wednesday, May 21st. The company reported $0.70 EPS for the quarter, missing the Thomson Reuters consensus estimate of $0.71 by $0.01. The company had revenue of $17.05 billion for the quarter, compared to the consensus estimate of $17.02 billion. During the same quarter in the prior year, the company posted $0.77 earnings per share. The company’s quarterly revenue was up 2.1% on a year-over-year basis. On average, analysts predict that Target will post $3.69 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which is scheduled for Wednesday, September 10th. Investors of record on Wednesday, August 20th will be given a dividend of $0.52 per share. This represents a $2.08 dividend on an annualized basis and a yield of 3.50%. The ex-dividend date of this dividend is Monday, August 18th. This is an increase from Target’s previous quarterly dividend of $0.43.
Target Corporation sells a range of assortment of general merchandise and food in its stores. The Company’s general merchandise and CityTarget stores offer a food assortment on a smaller scale and its SuperTarget stores offer a line of food items comparable to traditional supermarkets.
To view Zacks’ full report, visit Zacks’ official website.
Get Analysts' Upgrades and Downgrades via Email - Stay on top of analysts' coverage with Analyst Ratings Network's FREE daily email newsletter that provides a concise list of analysts' upgrades and downgrades. Click here to register now.