Is Target's Revenue Growth Sustainable? Analyst Lowers FY24 Earnings Estimates
Portfolio Pulse from Nabaparna Bhattacharya
RBC Capital Markets analyst Steven Shemesh reiterated an Outperform rating on Target Corporation (NYSE:TGT) but lowered the price target to $191 from $198. Target reported Q1 FY23 sales growth of 0.6% YoY to $25.32 billion, beating estimates. However, the analyst cut FY24 earnings estimates to $10.61 from $11 and remains cautious due to weak monthly comps and shrink concerns.
May 18, 2023 | 6:13 pm
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RBC Capital Markets analyst lowers Target's price target to $191 from $198 and cuts FY24 earnings estimates to $10.61 from $11, citing weak monthly comps and shrink concerns.
The lowered price target and reduced FY24 earnings estimates by the RBC analyst indicate a cautious outlook for Target. Weak monthly comps and concerns about shrink, which could reduce profitability by more than $500 million, are the main reasons for the negative short-term impact on the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100