Why Target Is Goldman Sachs' Top Retail Idea For 2024, Plus 2 Additional Retail Plays For Next Year
Portfolio Pulse from Chris Katje
Goldman Sachs analyst Kate McShane has identified Target Corporation (TGT), Ollie's Bargain Outlet Holdings (OLLI), and Bath & Body Works Inc (BBWI) as top retail stock picks for 2024. McShane is bullish on the retail sector due to improving margins, a strong labor market, and healthier consumer finances. Target is seen as having long-term growth potential with market share gains and improved operating margins. Ollie's is favored for its favorable closeout environment and growing scale, while Bath & Body Works is expected to return to positive sales growth in the second half of 2024 and could benefit from share buybacks.
December 14, 2023 | 2:55 pm
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POSITIVE IMPACT
Bath & Body Works is highlighted as a top pick for 2024 by Goldman Sachs, with expectations of positive sales growth in the second half of the year and benefits from share buybacks.
Bath & Body Works' path to positive sales growth in the second half of 2024 and its share buyback program are seen as positive indicators for the stock. This could attract investors looking for companies with growth potential and shareholder value initiatives.
CONFIDENCE 70
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Ollie's Bargain Outlet is Goldman Sachs' top small to mid-cap retail pick for 2024, with an upgrade from Neutral to Buy and a price target of $91.
The upgrade of Ollie's stock from Neutral to Buy and the raised price target to $91 by Goldman Sachs indicate a strong positive sentiment towards the company's prospects. This could lead to increased investor interest and a potential uptick in the stock price.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 85
POSITIVE IMPACT
Goldman Sachs names Target as the top retail stock for 2024, citing potential for market share gains and a 6% or more improvement in operating margins.
Target's potential for market share gains and improved operating margins are seen as key drivers for its stock performance in 2024. The positive outlook from Goldman Sachs could lead to increased investor confidence and a potential rise in stock price.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90