Target Seen With Upside On Rebounding Sales

Target’s top line is looking a lot less risky this year. Morgan Stanley analyst Simeon Gutman says in a research note that the company is recovering from its idiosyncratic challenges, with overall discretionary spending set to rebound this year. Both of those factors likely point to accelerating sales momentum. He also sees potential for a margins beat, including from improving shrink. Target stock tends to re-rate with a higher multiple when macro or business-specific trends improve, and he sees that happening this year. Gutman upgrades shares to overweight from equal-weight and raises his price target to $165 a share from $140.

Scroll to Top