Target's Sales Decline And EPS Miss: Why Analysts Remain Optimistic
Portfolio Pulse from Shivani Kumaresan
Target Corp (NYSE:TGT) reported a 3.1% decline in first-quarter FY24 sales and missed the adjusted EPS consensus estimate. Despite this, analysts remain optimistic, citing improvements in certain sales categories and digital sales. Analysts from BofA Securities and Telsey Advisory Group reiterated their positive ratings and price targets. Target's stock has declined over 5% in the last 12 months and is currently trading lower by 7.45%. Investors can gain exposure through Consumer Staples Select Sector SPDR Fund (NYSE:XLP) and Vanguard Consumer Staples ETF (NYSE:VDC).
May 22, 2024 | 4:25 pm
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NEGATIVE IMPACT
Target Corp reported a 3.1% decline in first-quarter FY24 sales and missed the adjusted EPS consensus estimate. Despite this, analysts remain optimistic due to improvements in certain sales categories and digital sales. Target's stock is currently trading lower by 7.45%.
The decline in sales and the EPS miss are negative indicators, leading to a short-term drop in stock price. However, analysts' optimism and improvements in certain areas may mitigate long-term impact.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Investors can gain exposure to Target through the Vanguard Consumer Staples ETF. Target's recent performance may impact the ETF's short-term performance.
Target's poor performance may negatively impact the Vanguard Consumer Staples ETF in the short term, given its exposure to Target.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Investors can gain exposure to Target through the Consumer Staples Select Sector SPDR Fund. Target's recent performance may impact the fund's short-term performance.
Target's poor performance may negatively impact the Consumer Staples Select Sector SPDR Fund in the short term, given its exposure to Target.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50