Morgan Stanley analyst Simeon Gutman maintained a Buy rating on Target (TGT – Research Report) yesterday and set a price target of $160.00.
Simeon Gutman has given his Buy rating due to a combination of factors that suggest a positive outlook for Target’s stock. Despite a year-to-date decline in stock value and concerns about consumer health, Target’s fourth-quarter earnings and guidance for 2025 exceeded expectations, presenting a respectable outcome. This performance indicates resilience and potential for recovery.
However, Gutman notes that the guidance is not without challenges, as it relies on flat comparable sales and requires significant gross margin expansion amidst uncertain economic conditions. Nonetheless, the acceleration in specific categories like Apparel and Hardlines, along with strong digital sales, highlights Target’s potential for margin growth. These factors, combined with the expectation of improved profitability in the latter half of 2025, underpin Gutman’s optimistic rating.
In another report released yesterday, Wells Fargo also maintained a Buy rating on the stock with a $135.00 price target.