Bank of America Reiterates Underperform Rating for Target (NYSE:TGT)

Key Points

• Bank of America has reiterated an "underperform" rating for Target (NYSE:TGT), lowering the price target from $105.00 to $93.00, indicating a potential downside of 10.82% from the stock's previous close.
• Target's latest earnings report showed a miss with earnings per share at $1.30, falling short of expectations of $1.65, and a revenue of $24.20 billion compared to the anticipated $24.54 billion.
• Currently, Target has a consensus rating of "Hold," with four analysts recommending a sell, twenty-two a hold, and ten a buy, while the average price target stands at $115.42.

Target (NYSE:TGT - Get Free Report)'s stock had its "underperform" rating reiterated by investment analysts at Bank of America in a research note issued on Friday, MarketBeat Ratings reports. They currently have a $93.00 price target on the retailer's stock, down from their prior price target of $105.00. Bank of America's target price suggests a potential downside of 11.80% from the company's current price.

TGT has been the subject of several other reports. Evercore ISI lifted their price objective on Target from $104.00 to $108.00 and gave the stock an "in-line" rating in a research report on Tuesday, August 12th. The Goldman Sachs Group lowered their price objective on Target from $101.00 to $90.00 and set a "neutral" rating for the company in a research report on Thursday, May 22nd. Citigroup decreased their target price on Target from $97.00 to $94.00 and set a "neutral" rating for the company in a research report on Thursday, May 22nd. JPMorgan Chase & Co. boosted their target price on Target from $105.00 to $109.00 and gave the company a "neutral" rating in a research report on Thursday, May 22nd. Finally, Piper Sandler reaffirmed a "neutral" rating on shares of Target in a research report on Tuesday, July 29th. Ten equities research analysts have rated the stock with a Buy rating, twenty-two have given a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat, Target has an average rating of "Hold" and an average price target of $115.42.

Target Trading Up 0.5%

TGT traded up $0.4940 during midday trading on Friday, hitting $105.4440. 8,598,648 shares of the company were exchanged, compared to its average volume of 6,909,552. The firm has a market capitalization of $47.91 billion, a P/E ratio of 11.59, a P/E/G ratio of 2.98 and a beta of 1.22. Target has a 1-year low of $87.35 and a 1-year high of $167.40. The firm's 50 day moving average price is $101.92 and its 200-day moving average price is $104.39. The company has a quick ratio of 0.25, a current ratio of 0.94 and a debt-to-equity ratio of 0.96.

Target (NYSE:TGT - Get Free Report) last announced its earnings results on Wednesday, May 21st. The retailer reported $1.30 EPS for the quarter, missing the consensus estimate of $1.65 by ($0.35). Target had a return on equity of 25.59% and a net margin of 3.95%.The company had revenue of $24.20 billion for the quarter, compared to analyst estimates of $24.54 billion. During the same period in the previous year, the firm posted $2.03 earnings per share. The firm's quarterly revenue was down 2.8% compared to the same quarter last year. Target has set its FY 2025 guidance at 7.000-9.000 EPS. As a group, equities analysts forecast that Target will post 8.69 EPS for the current fiscal year.

Insiders Place Their Bets

In other Target news, insider Brian C. Cornell sold 45,000 shares of the stock in a transaction on Wednesday, May 28th. The stock was sold at an average price of $96.18, for a total transaction of $4,328,100.00. Following the completion of the transaction, the insider directly owned 246,453 shares of the company's stock, valued at approximately $23,703,849.54. This represents a 15.44% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 0.16% of the company's stock.

Hedge Funds Weigh In On Target

Several institutional investors and hedge funds have recently bought and sold shares of the company. WFA of San Diego LLC purchased a new stake in shares of Target during the second quarter worth $25,000. Raleigh Capital Management Inc. lifted its position in shares of Target by 63.4% during the second quarter. Raleigh Capital Management Inc. now owns 263 shares of the retailer's stock worth $26,000 after acquiring an additional 102 shares in the last quarter. Kozak & Associates Inc. lifted its position in shares of Target by 2,530.0% during the second quarter. Kozak & Associates Inc. now owns 263 shares of the retailer's stock worth $27,000 after acquiring an additional 253 shares in the last quarter. Bernard Wealth Management Corp. purchased a new stake in shares of Target during the fourth quarter worth $29,000. Finally, Investment Research & Advisory Group Inc. purchased a new stake in shares of Target during the second quarter worth $29,000. 79.73% of the stock is owned by institutional investors.

About Target

Target Corporation operates as a general merchandise retailer in the United States. The company offers apparel for women, men, boys, girls, toddlers, and infants and newborns, as well as jewelry, accessories, and shoes; and beauty and personal care, baby gear, cleaning, paper products, and pet supplies.