Target’s Strategic Initiatives and Omni-Channel Growth Drive Buy Rating with USD 135 Target Price

DBS analyst Mavis Hui has reiterated their bullish stance on TGT stock, giving a Buy rating on May 19.

Mavis Hui’s rating is based on several strategic initiatives and financial metrics that suggest a positive outlook for Target. Despite a slight decline in revenue due to a shorter quarter, Target’s comparable sales saw growth, driven by a recovery in holiday season traffic. The adjusted EPS, although down year-over-year, exceeded market expectations, indicating strong financial management.
Target’s focus on omni-channel growth is a key factor in the Buy rating. By integrating online and offline sales and enhancing same-day delivery services, Target is well-positioned to cater to diverse customer needs. The company’s efficient use of physical stores as logistics centers significantly reduces delivery costs, which could help mitigate margin pressures. Additionally, ongoing investments in store remodeling and partnerships with major brands are expected to drive sales. These factors, combined with a positive long-term growth outlook and efficient operations, underpin the Buy recommendation with a target price of USD 135 per share.

In another report released on May 19, Bank of America Securities also maintained a Buy rating on the stock with a $145.00 price target.