Target Corporation (TGT): Is It Now Or Never?

Target Corporation (NYSE:TGT) is rated as Outperform by analysts at Telsey Advisory Group. The firm was pushed by the stock performance to change their PT view from $86 to $88 on March 06. Analysts at Citigroup, started covering the stock on February 26 with a Neutral rating. Brokerage firm Telsey Advisory Group, looks cautious as they stick to prior recommendation of Outperform, in a call on January 07. However, they did change the target price from $100 to $86. Standpoint Research analysts came out with bullish views on December 26 when the call was made. They think the stock is now Buy compared to to their prior call for Hold.

TGT stock dropped -0.82% in recent trade and currently has a stock-market value of $40.1B. The shares finished at $76.49, after trading as low as $76.05 earlier in the session. It hit an intraday high Thursday at $76.8. Trading activity significantly weakened as the volume at ready counter decreased to 3,768,881 shares versus 5,756,090 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 5,401,240 shares. The stock is now 27.17% above against its bear-market low of $60.15 on December 24, 2018. It has retreated -18.17% since it’s 52-week high of $90.39 reached in September. Now the market price is up 7.48% on the year and up 15.74% YTD.

Wall Street’s most bullish Target Corporation (NYSE:TGT) analysts are predicting the share price to blow past $110 per share during the next 12 months. The current median share price forecast by them is $84, suggesting that the stock could increase 9.82% in that time frame. The average price target of $85.14 calls for a nearly 11.31% increase in the stock price.

Target Corporation (TGT)’s 50 day simple moving average (SMA 50) price is $71.82 and its 200-day simple moving average (SMA 200) price is $77.56. The company’s stock currently has a total float of 516.66M shares. Its weekly volatility is hovering around 1.24% and felt 1.91% volatility in price over a month. On the upside, the share price will test short term resistance at around $76.84. On a downside, the stock is likely to find some support, which begins at $76.09. The failure to get near-term support could push it to $75.7.

When looking at valuations, Target Corporation (TGT) has a cheap P/E of 14.09x as compared to industry average of 25.82x. Moreover, it trades for 12.33 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 3.63x price/book and 0.53x price/sales. Compared to others, Target Corporation is in a different league with regards to profitability, having net margins of 4.1%. To put some perspective around this, the industry’s average net margin is 4.72%. TGT’s ROE is 27.4%, which is also considerably better than the industry’s ROE of 19.99%. It’s also not liquid in the near term, with a current ratio of 0.8. The stock has a debt/capital of 1.05.

TGT last reported earnings that exceeded expectations. The company raked in $1.53 per share, 80% change on the same period last year. That was better than consensus for $1.52. Revenue for the recent quarter stood at $22.98 billion, up 1% on last year and below the $22.96 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $17.23 billion to $17.71 billion, which should be compared with $16.86 billion generated last year.