The stock of discount retailer Target (TGT) has been upgraded by Wall Street firm Oppenheimer (OPY).
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Rupesh Parikh, a five-star rated analyst at TipRanks, named TGT stock a “top pick,” reiterated a Buy-equivalent Outperform rating, and gave the shares a $165 price target. The bullish call comes despite disappointing third-quarter financial results from Target.
Looking past the poor Q3 results and and a downgrade from Target to its Fiscal year 2024 outlook, Parikh identifies several positive factors for the retailer, including an attractive entry point for investors, achievable fourth-quarter guidance, and an appealing dividend yield.
Temporary Challenges
Target’s stock fell more than 20% after its Q3 print. However, Parikh says he isn’t worried and feels that investor sentiment has become too bearish. The Oppenheimer analyst says that Target is facing a number of temporary challenges such as fewer holiday shopping days this year and headwinds in non-essential sales categories such as children’s toys.
However, Parikh says the long-term prospects for Target remain bright. He notes that Target’s digital sales expansion, store investments, exclusive brand sales, and collaborations with other retailers position the company to capture market share.
Parikh advises investors to buy-the-dip in TGT stock, which has declined 7% year-to-date.
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, 10 hold, and no Sell recommendations issued in the last three months. The average TGT price target of $182.52 implies 40.30% upside from current levels.
