On Nov 21, major Wall Street analysts update their ratings for $Target (TGT.US)$, with price targets ranging from $129 to $195.
BofA Securities analyst Robert Ohmes maintains with a buy rating, and adjusts the target price from $195 to $160.
Barclays analyst Seth Sigman maintains with a hold rating, and adjusts the target price from $169 to $140.
Jefferies analyst Corey Tarlowe maintains with a buy rating, and adjusts the target price from $195 to $165.
Guggenheim analyst Robert Drbul maintains with a buy rating, and adjusts the target price from $190 to $145.
Baird analyst Justin Kleber maintains with a buy rating, and maintains the target price at $190.
Furthermore, according to the comprehensive report, the opinions of $Target (TGT.US)$'s main analysts recently are as follows:
Following Target's Q3 earnings shortfall and subdued outlook, the EPS forecast for FY25 was reduced, reflecting the Q3 miss and anticipated ongoing challenges in Q4. It's expected that the level performance in Q4 will demonstrate persistent weakness in discretionary categories and the effects of calendar timing, with most of the cost challenges from Q3 likely impacting the quarter.
Target's Q3 results did not meet earlier conservative estimates regarding margins due to the buildup of inventories around early receipts and increased discounting. This situation was exacerbated by a higher proportion of sales taking place during promotional periods, along with challenges from warm weather affecting apparel sales. While these are mostly seen as cyclical challenges, it is indicated that the responsibility to demonstrate improvement now rests with the company.
The firm's recent quarterly report highlighted three main concerns including subdued sales, reduced gross margins, and elevated SG&A costs, prompting a significant reaction in the stock today. 'Much of this appears to be a case of wrong place, wrong time,' which furthers discussions around market share and strategies for improving top-line results. There's an anticipation that sales improvements, which were not evident in this quarter, might materialize in the subsequent one.
Following Target's less than favorable Q3 results and a Q4 outlook that fell below expectations, estimates for FY24-FY26 have been reduced. The decelerating comp trends observed are partly attributed by the company to a cautious consumer spending environment. However, it appears there is an underperformance when compared to major competitors such as large wholesale and retail players.
Despite the disappointing Q3 performance, analysts see several options and strategies for the company to achieve a 6% operating margin. They adjusted their FY24 and FY25 EPS estimates to $8.60 and $9.50, respectively, based on recent results and the updated perspective on discretionary spending at the company.
Here are the latest investment ratings and price targets for $Target (TGT.US)$ from 13 analysts:
Note:
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