Analyst Robert Ohmes from Bank of America Securities reiterated a Buy rating on Target (TGT – Research Report) and decreased the price target to $145.00 from $160.00.
Robert Ohmes has given his Buy rating due to a combination of factors that highlight Target’s strong long-term positioning and strategic initiatives. Despite some near-term sales volatility and competitive pressures, Target’s fourth-quarter earnings exceeded expectations, driven by a stronger-than-anticipated top line and a notable increase in traffic. The company has also been proactive in reducing its reliance on Chinese production, which mitigates tariff uncertainties and positions it well for future growth.
Furthermore, Target’s strategic initiatives, such as new product introductions, the expansion of Target Plus, and the growth of Roundel, are expected to support both sales and margin recovery. Digital enhancements and improvements in digital profitability also contribute positively to the company’s bottom line. These factors, combined with an attractive valuation, underpin Robert Ohmes’s confidence in Target’s ability to navigate current challenges and capitalize on growth opportunities, leading to the reiterated Buy rating.
Ohmes covers the Consumer Cyclical sector, focusing on stocks such as AutoZone, Lowe’s, and O’Reilly Auto. According to TipRanks, Ohmes has an average return of 10.7% and a 61.46% success rate on recommended stocks.
In another report released yesterday, Telsey Advisory also maintained a Buy rating on the stock with a $150.00 price target.