Retailing giant Target (NYSE:TGT) soared in pre-market trading after announcing strong fourth-quarter results. The retailer reported Q4 adjusted earnings of $2.98 per share, up by 57.6% year-over-year and beating estimates of $2.42 per share.
Target’s revenues increased by 1.7% year-over-year to $31.9 billion and were above consensus estimates of $31.8 billion. The company’s total comparable sales declined by 4.4% in the fourth quarter, reflecting a drop in comparable store sales of 5.4% and a fall in comparable digital sales of 0.7%.
Looking forward to the first quarter, the retailer expects comparable sales to decline by 3% to 5%, while adjusted earnings are likely to be between $1.70 and $2.10 per share. For FY24, the company has projected a modest 0% to 2% increase in comparable sales, with adjusted earnings of $8.60 to $9.60 per share.
Is TGT a Good Buy Now?
Analysts remain bullish about TGT stock with a Strong Buy consensus rating based on 14 Buys and four Holds. Over the past year, TGT stock has slid by more than 6%, and the average TGT price target of $163.22 implies an upside potential of 8.5% at current levels. It is important to note that these analyst ratings may change following the retailer’s fourth-quarter results today.
