Target’s Recovery Looking Well on Its Way

Target’s 4Q results and 2024 guidance are evidence that the retail giant is rebounding from a rocky 2023, as seen by its continued margin recapture and sequential improvements on the top line, UBS analysts say in a research note. There was quarter-to-quarter improvement in most discretionary categories, including toys and consumer electronics, which coincided with some sequential moderation in food inflation, the bullish analysts say. That suggests that a lack of food inflation this year could unlock some extra dollars in consumers’ budgets for discretionary spending, they say, raising their price target on the stock to $191 from $174. Shares rise 3.8% to $175.04.

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