For a while, Target (NYSE:TGT) was doing well as both a retail success story and a pandemic darling. It lost some of that ground in the post-pandemic era, but it’s still doing solidly overall. Sufficiently so, in fact, that it just gained a few extra points today on word that an activist investor may be taking interest.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
The word about Target’s targeting came from a report from Activist Insight, the same reporting mechanism that declared Advance Auto Parts (NYSE:AAP) a similar target yesterday. While Advance is significantly more likely than Target to be an activist target—Advance was in the 97th percentile while Target is merely in the 67th—there’s still a very clear chance for Target to find itself under investor interest for a range of reasons, starting with recent issues of inventory and operating margins. With TGT shares down 11% this year, there are improvements that could be made.
The firm also finds itself under attack by the culture wars in general, coming under fire over some of its merchandise specifically geared toward Pride Month. The objectors to such merchandise took exception, and Target quietly relocated said stock. Then came the bomb threats against Target stores for performing such relocation, and things got sticky. So far, Target has lost $15.7 billion in market capitalization as a result of the Pride Month merchandising affair, and certainly, an activist investor might take interest therein.
Analysts are somewhat split on Target’s overall trajectory. With 12 Buy ratings and 11 Holds, Target stock is considered a Moderate Buy. Furthermore, it offers its shareholders 33.88% upside potential thanks to its average price target of $177.84.
