S&P 500   5,137.08
DOW   39,087.38
QQQ   445.61
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Norway's hospitalized king gets a pacemaker in Malaysia after falling ill during vacation
Head Start preschools aim to fight poverty, but their teachers struggle to make ends meet
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
What to watch for as China's major political meeting of the year gets underway
South Korean doctors hold massive anti-government rally over medical school recruitment plan
S&P 500   5,137.08
DOW   39,087.38
QQQ   445.61
Lawyers who successfully argued Musk pay package was illegal seek $5.6 billion in Tesla stock
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Sports analytics may be outnumbered when it comes to artificial intelligence
Chicago 'mansion' tax to fund homeless services stuck in legal limbo while on the ballot
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Norway's hospitalized king gets a pacemaker in Malaysia after falling ill during vacation
Head Start preschools aim to fight poverty, but their teachers struggle to make ends meet
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
What to watch for as China's major political meeting of the year gets underway
South Korean doctors hold massive anti-government rally over medical school recruitment plan
S&P 500   5,137.08
DOW   39,087.38
QQQ   445.61
Lawyers who successfully argued Musk pay package was illegal seek $5.6 billion in Tesla stock
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Sports analytics may be outnumbered when it comes to artificial intelligence
Chicago 'mansion' tax to fund homeless services stuck in legal limbo while on the ballot
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Norway's hospitalized king gets a pacemaker in Malaysia after falling ill during vacation
Head Start preschools aim to fight poverty, but their teachers struggle to make ends meet
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
What to watch for as China's major political meeting of the year gets underway
South Korean doctors hold massive anti-government rally over medical school recruitment plan
S&P 500   5,137.08
DOW   39,087.38
QQQ   445.61
Lawyers who successfully argued Musk pay package was illegal seek $5.6 billion in Tesla stock
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Sports analytics may be outnumbered when it comes to artificial intelligence
Chicago 'mansion' tax to fund homeless services stuck in legal limbo while on the ballot
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Norway's hospitalized king gets a pacemaker in Malaysia after falling ill during vacation
Head Start preschools aim to fight poverty, but their teachers struggle to make ends meet
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
What to watch for as China's major political meeting of the year gets underway
South Korean doctors hold massive anti-government rally over medical school recruitment plan

Target’s Double Bottom Might Have Just Been Confirmed

target stock forecastThe jury is still out, but it’s starting to look like shares of Target Corporation NYSE: TGT will go up from here over the next few weeks. It has certainly been a wild couple of days as the bulls and the bears have fought for control of the $75 billion retailer. The company's Q3 earnings, released during the week, only added fuel to the fire. As the weekend gets set to start, the bulls will definitely be the happier of the two. 

Key Points

  • Target shares have been hitting higher lows since the summer.
  • This week's earnings report ripped the band-aid off. 
  • Piper Sandler just gave shares a $190 price target. 
  • 5 stocks we like better than Target

Though the headline numbers from this week’s earnings report were mixed, the devil was in the details. Revenue was up just over 3% on the year and ahead of what analysts had been expecting for the Target stock forecast. However, a miss on the company’s earnings took the shine off that pretty quickly. Management lowered its forward guidance for the holiday season in light of the challenging economic environment.

Bullish Comments

CEO Brian Cornell hit a bullish tone when he said, "In the third quarter, our business delivered comparable sales growth of 2.7% and we saw unit share gains across all of our core merchandise categories. This performance demonstrates the durability of our business model which continues to serve our guests and drive loyalty despite the challenging economic environment.”

He flagged the softening impact that “inflation, rising interest rates and economic uncertainty” have had on the company’s sales and profit trends as shoppers tighten their purse strings in the face of a bleak winter. 

Despite all this, the initial reaction was vicious and brutal. Shares gapped down 16% on the open following the report’s release, which undid the previously promising pre-earnings rally. Positively for the bulls, shares rallied throughout the day and all through yesterday, too. As shares set to open up on Friday, it looks as if the initial drop was a snap reaction and one that investors have quickly reversed. 

Fresh Upgrade

The team at Piper Sandler wasn't afraid to upgrade shares in the aftermath of the report, a bullish vote of confidence that has done a lot to underpin the bid in shares. Piper Sandler upped its rating from "neutral" to "overweight," noting it had had a difficult 2022, but felt this was close to the bottom. In particular, it highlighted what feels like trough level EBIT margins. At a 0.8x 2023 EV/sales valuation, shares have started to look compelling. Piper’s price target of $190 points raised to about 20% upside from current levels, with the technical setup also aligning with the bulls camp. 


In June, shares had hit their lowest levels since the onset of the pandemic and came perilously close to breaking them during last month’s weakness — but they didn't. Instead, they set a higher low and have refused to stay below $150 since. There are undoubtedly fundamental headwinds for Target to navigate in the coming months but all signs point to shares moving higher from here rather than lower. If you believe in recovery rallies, especially when the worst-case scenario has already been priced in, you may not want to look further than Target this quarter.

→ This is the #1 Stock to Buy for the AI Tidal Wave (From Chaikin Analytics) (Ad)

Should you invest $1,000 in Target right now?

Before you consider Target, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Target wasn't on the list.

While Target currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

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MarketBeat has just released its list of 20 stocks that Wall Street analysts hate. These companies may appear to have good fundamentals, but top analysts smell something seriously rotten. Are any of these companies lurking around your portfolio? Find out by clicking the link below.

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Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Target (TGT)
4.681 of 5 stars
$155.29+1.5%2.83%19.81Moderate Buy$152.83
Compare These Stocks  Add These Stocks to My Watchlist 

Sam Quirke

About Sam Quirke

  • s.quirke.us@gmail.com

Contributing Author

Technical Analysis

Experience

Sam Quirke has been a contributing writer for MarketBeat since 2019.

Areas of Expertise

Technical and fundamental analysis, tech stocks, large caps, timing entries and exits

Education

Trinity College, Dublin, Ireland

Past Experience

Professional futures trader, start-up fund manager


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