Target (TGT – Research Report), the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Corey Tarlowe from Jefferies reiterated a Buy rating on the stock and has a $150.00 price target.
Corey Tarlowe has given his Buy rating due to a combination of factors that highlight Target’s potential for growth and value. Despite some concerns, such as slightly lowered long-term expectations and soft sales trends in February, Target’s strong performance in key categories like toys, electronics, and apparel during Q4, along with a notable increase in digital sales, supports a positive outlook. The company’s digital platform has shown significant growth, and management’s plans to expand its marketplace and advertising business further bolster this view.
Additionally, Target’s guidance for modest operating margin expansion by FY’25 and a projected $15 billion sales growth over the next five years indicate a strong strategic direction. The company’s plan to open 300 new stores over the next decade, including 20 this year, demonstrates a commitment to expanding its market presence. These factors, combined with the belief that Target can achieve mid-to-high single-digit EPS growth, make the stock appear undervalued and justify the Buy rating.