Target's Risk-Reward Is Getting Better, Analyst Says In Bullish Turn On Retail Stock
Portfolio Pulse from Nabaparna Bhattacharya
BofA analyst Robert F. Ohmes has upgraded Target Corporation (TGT) to Buy from Neutral, raising the price target to $135 from $120. The analyst is optimistic about the company's Gross Margin upside opportunities, likely to be generated from freight & transportation cost recovery and the non-recurrence of various inventory reduction costs. TGT's digital traffic could accelerate from current levels driven by Target Circle Week, the addition of Starbucks Corporation (SBUX) & returns to Drive Up, and the remodel of TGT's online experience.
October 12, 2023 | 7:17 pm
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NEUTRAL IMPACT
Starbucks Corporation (SBUX) is mentioned as a factor that could accelerate Target Corporation's digital traffic.
While Starbucks Corporation is mentioned as a factor that could accelerate Target Corporation's digital traffic, the direct impact on Starbucks' stock is not clear from the news. Therefore, the short term impact on SBUX stock is neutral.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
POSITIVE IMPACT
Target Corporation's stock has been upgraded to Buy from Neutral by BofA analyst, with a raised price target of $135 from $120. The analyst is optimistic about the company's Gross Margin upside opportunities and acceleration of TGT's digital traffic.
The upgrade from BofA analyst and the raised price target indicates a positive outlook for the company. The analyst's optimism about the company's Gross Margin upside opportunities and acceleration of TGT's digital traffic could potentially drive the stock price up in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100