Target Corporation (TGT:NYE) Analysts rate with a Strong Buy, 40 percent upside

STA Research
by: STA Research

Based on the Target Corporation stock forecasts from 24 analysts, the average analyst target price for Target Corporation is USD 214.25 over the next 12 months. Target Corporation’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Target Corporation is Bullish, which is based on 14 positive signals and 2 negative signals. At the last closing, Target Corporation’s stock price was USD 157.49Target Corporation’s stock price has changed by +8.13% over the past week, +7.07% over the past month and -39.63% over the last year.

Target Corporation operates as a general merchandise retailer for food assortments, apparel, accessories, electronics, beauty, and household essentials in the United States. The company sells its products through its stores; and digital channels, including Target.com. As of March 09, 2022, the company operated approximately 2,000 stores. Target Corporation was incorporated in 1902 and is headquartered in Minneapolis, Minnesota.

What we like:

High market capitalization:

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior total returns:

The TGT stock target price has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

High dividend returns:

The TGT stock price has outperformed its sector peers on average annual dividend returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile. This can be a good buy, especially if it is outperforming on total return basis, for investors seeking high income yields.

Underpriced compared to earnings:

The TGT stock price is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Underpriced on cashflow basis:

The TGT stock price is trading low compared to its peers on a price to cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior return on equity:

The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization:

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets:

The target corporation stock price history has delivered better returns on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow:

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow:

The company had positive total free cash flow in the most recent four quarters.

Underpriced on free cash flow basis:

The TGT stock price is trading low compared to its peers on a price to free cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior Earnings Growth:

This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

Superior Revenue Growth:

This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

Superior Dividend Growth:

This stock has shown top quartile dividend growth in the previous 5 years compared to its sector

What we don’t like:

High volatility:

The total returns for the TGT stock target price are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Highly leveraged:

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

 

Disclaimer

Stock Target Advisor is not a broker/dealer, investment advisor, or platform for making stock buying or selling decisions. Our goal is to democratize and simplify financial information through automated analysis, aggregation of stock information, and education to help investors with their research. No content on our site, blogs or newsletters constitutes – or should be understood as constituting – a recommendation to enter into any securities transactions or to engage in any of the investment strategies presented in our site content. We also cannot guarantee the accuracy of any information presented on our site and in our analysis.

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