Gold prices slip lower; consolidating after recent gains
On Wednesday, Citi analysts increased their price target on Target Corporation (NYSE:TGT) shares from $95.00 to $97.00, maintaining a Neutral rating on the retailer’s stock. The adjustment follows Target’s management commentary from their fourth-quarter earnings call on March 4, 2025, where they indicated a slow start to February sales, partly due to adverse weather conditions. Despite the stock’s significant decline of over 34% in the past six months, InvestingPro analysis suggests Target is currently undervalued, with the company maintaining strong fundamentals including a P/E ratio of 11.2 and an impressive 54-year streak of consecutive dividend increases.
Citi’s analysis, which includes data from Placer regarding foot traffic, suggests that customer visits to Target stores did not pick up significantly in March and only showed a slight increase in April, with the overall trend for the month remaining negative. This observation supports the analysts’ projection of first-quarter sales and earnings per share (EPS) below the market consensus. Citi models a 3.0% decrease in comparable store sales against a consensus estimate of a 1.2% decline, and an EPS forecast of $1.49 compared to the FactSet consensus of $1.69. For deeper insights into Target’s financial health and detailed valuation metrics, including 10 key ProTips and comprehensive analysis, visit InvestingPro.
The report also addresses the broader uncertainties in the market, such as the impact of tariffs and macroeconomic factors. Due to these concerns, Citi analysts believe that Target management might withdraw its full-year 2025 EPS guidance, which currently stands at $8.80 to $9.80, versus a consensus of $8.58. This potential retraction of guidance is anticipated by investors, according to the analysts.
In their commentary, Citi analysts noted that while market expectations for Target are already low, the combination of weak top-line trends and a potential EPS miss could lead to a near-term decline in the stock’s price. They underscored the uncertainty surrounding the company’s financial outlook and the likelihood of management adjusting guidance in response to the current economic climate.
In other recent news, Target Corporation has been in the spotlight with several notable developments. Morgan Stanley (NYSE:MS) has maintained its Overweight rating for Target, setting a price target of $160, while acknowledging the company’s challenges in execution and long-term visibility. Meanwhile, CFRA has downgraded Target from a ’Buy’ to a ’Hold’ and slashed its price target to $100, citing concerns over economic conditions and tariff risks. Target’s earnings per share estimates for fiscal years 2026 and 2027 have also been revised downward by CFRA. In addition, the company is actively expanding its eCommerce platform and growing its loyalty programs, although these initiatives require significant investment. In a separate development, Target recently launched a limited-time kate spade new york collection, featuring over 300 fashion and home items. This collection emphasizes style and affordability, with more than half of the items priced at $15 or below. Target was also part of a meeting with President Trump to discuss the impact of tariffs, although the company did not provide immediate comments.
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