To help boost sales, discount retailer Target (TGT) is lowering prices on more than 2,000 items leading into the year-end holidays.
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Target has announced that it is cutting prices on items from snacks to children’s toys as it seeks to attract price-sensitive consumers during the busy holiday shopping season. Prices are also being cut on Target’s own private label brand.
This is Target’s latest effort to reduce prices and draw-in consumers who are still grappling with sticky inflation and elevated interest rates. In May of this year, Target lowered prices on about 5,000 products.
Targeting Cash-Strapped Consumers
Target isn’t alone in trying to attract frugal, cash-strapped consumers this holiday season. Rival discounter Walmart (WMT) has also been lowering prices on many of the items it sells as a growing number of shoppers search out discounts and lower priced items.
The approach by Target to reduce prices across many products appears to be paying off. In August of this year, the company reported its first increase in quarterly comparable sales in more than a year, citing the price cuts as the driving force. Target has also announced plans to hire 100,000 seasonal workers across its retail network this holiday season.
TGT stock has risen 44% in the last 12 months.
Is TGT Stock a Buy?
Target stock has a consensus Moderate Buy rating among 27 Wall Street analysts. That rating is based on 17 Buy and 10 Hold recommendations made in the last three months. The average TGT price target of $180.87 implies 21.19% upside from current levels.
