(CTN News) – According to data provided by InvestingPro, Target Corporation’s stock (NYSE: NYSE: TGT) saw a 1.7% rise with approximately 1.4 million shares trading, which diverges from the daily average volume of 4.91 million shares as reported by InvestingPro.
A Bank of America analyst upgraded the stock of the company from a “neutral” rating to a “buy” rating, marking a departure from the consensus “hold” rating among analysts, who had previously rated the stock as “neutral”.
As a result, they increased their price target for TGT from $120 to $135 per share, implying that there is a potential upside of 24%. The consensus prediction for the shares remains at $157 per share, which is a significant difference from the actual performance.
According to the Bank of America, the stock is currently trading at 12x 2 year forward earnings, indicating an improved risk/reward outlook based on current pricing.
In the coming months, according to analysts, there is likely to be an increase in both in-store and online activities.
It is anticipated that Target Circle Week,
The addition of Starbucks (NASDAQ: SBUX), increased drive-up sales and an improved online shopping experience will result in a 5% increase in store footfall and a 5% increase in digital traffic, driven by factors such as Target Circle Week, the addition of Starbucks, and increased drive-up sales.
There are a number of possible catalysts that could drive an increase in his slightly above-consensus earnings estimates as well as result in an expansion of his P/E multiple.
A reduction in inventory levels and fewer promotions are expected to result in an improvement in TGT’s ticket comps in the near future.
The results of this analysis are in line with InvestingPro Tips that highlight Target’s high return on invested capital and its position as a prominent player in the Consumer Staples Distribution & Retail sector.
In spite of the optimistic outlook, BofA also highlighted potential risks such as margin pressures from labor costs and investments, aggressive competition from rivals, and the rapid growth of smaller competitors.
According to Wall Street analysts, TGT stock is a Moderate Buy, with 13 buys, 16 holds, and no sales in the last three months. It is estimated that the average price target for the stock is $146.21 per share, suggesting a potential upside of 31.86%.
In addition, InvestingPro data indicates a 4.04% dividend yield and a 1.85% dividend growth in the last twelve months, reinforcing InvestingPro Tips that highlight Target’s consistent dividend payments for 53 consecutive years. Discover more insightful tips and real-time metrics on the InvestingPro platform.
Over the last six months, the stock of the company has declined significantly, with a total return of -32.32%, according to InvestingPro.
However, analysts predict profitability for the company this year, and it has indeed achieved profitability over the past twelve months.
Target Corporation has a market capitalization of $50.96 billion USD, which indicates that the company has a promising future ahead of it.