Retail giant Target Corporation (TGT) is preparing for the holiday season and bolstering its offerings on the toy side of the business. Target plans to have more than 160 Disney (DIS) shops inside its stores for the holiday season as part of an effort to offer customers a unique shopping experience.
The expansion drive will also result in exclusive deals in brick and mortar stores and online, as the company plans to target children of all ages.
The strengthening of ties with Disney will allow Target to offer a large selection of toys, including Star Wars and Raya. Additionally, Target plans to leverage Disney’s unique store experience to lure customers seeking toys, games, and other items. (See Target stock charts on TipRanks)
The company has also confirmed its Bullseye’s Top Toys list as it prepares to sell toys from some of the biggest brands, including LEGO and LOL Surprise!
Target Hardlines’ SVP Nik Nayar stated, “We’re seeing more guests shop for toys at Target than ever before, and whether it’s Bullseye’s Top Toys or finding joy with one of the 1,300+ exclusive toys and games, guests are choosing Target for our inspiring, easy and affordable gift-giving experience.”
Recently Morgan Stanley analyst Simeon Gutman reiterated a Hold rating on the stock with a $250 price target, implying that shares are fully priced at current levels.
The analyst said that the retail giant could struggle to beat expectations after the Q2 results aligned with estimates.
“TGT is growing off unprecedented comps and market share gains, but it does suggest the earnings revision cycle could be slowing (just as it seems to be for HD and other COVID beneficiaries),” Gutman commented.
Consensus among analysts is a Strong Buy based on 14 Buys and 4 Holds. The average Target price target of $278.71 implies 10.37% upside potential to current levels.
TGT scores a “Perfect 10” on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.