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The Key Takeaways
- Oppenheimer analysts on Monday again made Target a "top pick" despite the company's stock plunging after its earnings last week.
- The research firm said Target's stock appears to be "at/near a bottom" and is positioned to grow in the long term.
- Target's comparable digital sales were a bright spot in its earnings last week, growing more than 10% while same-store sales declined.
Target (TGT) stock shares rose Monday after Oppenheimer analysts named the company a “top pick” A week after disappointing earnings for the third quarter sent shares plummeting.
Oppenheimer said Target shares “appear to be at/near a bottom” Stocks dropped by about 20% after disappointing quarter results, which included a reduced outlook for the full year. The company issued a “buy” rating and $165 price target for Target, about a 30% premium to Friday's close and above the Visible Alpha average of near $144.
On Monday, the stock rose by more than 4 percent to over $130. However, year-to date, the share price is down by about 8%.
Efforts in Digital Should Pay Off Long Term
Oppenheimer “take advantage of any dips amidst a still difficult discretionary backdrop,” The analysts have written. “Longer term, we believe the company is well positioned to capture share driven by digital efforts, store investments, merchandising success on the exclusive brand front, competitor liquidations over time, and partnerships with other brands/retailers.”
Target’s annual earnings report showed that comparable digital sales grew 10.8% over the previous year. Comparable store sales fell 1.9%.
This retailer admitted earlier in the year that high prices were driving away some customers. They announced recently a daily and weekly schedule that would run throughout the holiday season.
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