Is TGT Stock a Buy After Earnings? 3 Analysts Weigh In on Target Price Predictions.

Target (NYSE:TGT) stock closed up 9.8% after the retailer reported fourth-quarter earnings. Based on the initial price action, investors were happy with what they saw. During Q4, Target reported that comparable sales grew 8.9% year over year (YOY). For the full year, the company reported revenue of $106 billion. This was significant because the yearly revenue marks the first time that Target was able to achieve annual sales above $100 billion.

Meanwhile, Target reported all-time high earnings per share (EPS) of $3.21, demonstrating the retailer’s ability to be profitable. EPS beat consensus estimates of $2.88 by a wide margin. In terms of guidance, the company “expects low- to mid-single digit revenue growth.” For fiscal year 2023 and beyond, the company expects mid-single-digit growth in revenue and operating income.

Target CEO Brian Cornell commented on the company’s outlook:

“As we look ahead, we’ll keep investing and delivering on all that has earned the loyalty and trust of our guests; that starts with our outstanding team and includes continued differentiation through affordability, assortment, ease and convenience.”

With Target’s Q4 earnings behind us, let’s see how analysts feel about TGT stock.

TGT Stock: 3 Analysts Weigh In on Target Price Predictions

  • RBC Capital has a price target of $278. Analyst Steven Shemesh believes that Target’s digital investments, store remodels, and brands portfolio has “driven structural improvements to the business that [are] not fully being appreciated by the street due to pandemic noise.” In addition, the analyst formulated his price target based on his expectations of earnings per share of $14.62 in fiscal 2023. On the other hand, Wall Street expects fiscal year 2023 EPS to be $14.57.
  • Cowen has a price target of $265. Analyst Oliver Chen notes that data from SimilarWeb show that e-commerce traffic to Target declined on a 2-year basis. However, the analyst still believes that the company is in a better position than Walmart (NYSE:WMT) to deal with challenges related to inflation and valuation. Chen also believes that Target engages with a “more resilient” consumer.
  • Wells Fargo has a price target of $230. Analyst Edward Kelly notes that Target’s impressive performance during Covid-19 will make future company growth comparisons difficult. Furthermore, Kelly explains that his price target is based off a 18x multiple of expected 2022 EPS of $12.75.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Article printed from InvestorPlace Media,

©2022 InvestorPlace Media, LLC

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