In a report released yesterday, Simeon Gutman from Morgan Stanley maintained a Buy rating on Target (TGT – Research Report), with a price target of $160.00.
Simeon Gutman has given his Buy rating due to a combination of factors that highlight Target’s strategic positioning and potential for growth. The company’s current valuation presents an attractive entry point for value investors, especially given its discount compared to broadline peers. Target’s strategic investments in eCommerce and same-day services have shown significant growth, indicating a strong digital sales trajectory.
Furthermore, the company is focusing on enhancing its in-house apparel brands and expanding its advertising income through Roundel, which has maintained a robust growth rate. Despite the competitive pressures from major retailers like Amazon, Walmart, and Costco, Target’s initiatives to improve its operating margin and adapt to market challenges are promising. However, challenges such as increased digital fulfillment costs and a cautious macroeconomic environment remain, but the overall risk/reward profile is deemed favorable.
Gutman covers the Consumer Cyclical sector, focusing on stocks such as Tractor Supply, Advance Auto Parts, and Wayfair. According to TipRanks, Gutman has an average return of 2.8% and a 59.51% success rate on recommended stocks.
In another report released yesterday, DBS also reiterated a Buy rating on the stock with a $188.00 price target.