Target price target raised to $195 from $167 at DA Davidson

DA Davidson analyst Michael Baker raised the firm’s price target on Target to $195 from $167 and keeps a Buy rating on the shares. The company’s sales are still down year over year and are expected to be again in Q1, though the pivot to growth is coming, most likely in Q2 of 2024, as Target cycles the start of the worst of the negative comps a year ago coming in part due to the Pride issue, the analyst tells investors in a research note. Target is moving past the issues of the last few years, including the inventory glut, which should continue to lead to a recovery in operating margins back to pre-pandemic range, the firm added.