Fubotv earnings beat by $0.10, revenue topped estimates
On Wednesday, Piper Sandler made adjustments to its outlook on Target Corporation (NYSE:TGT) shares, reducing the price target from $132.00 to $124.00 while retaining a Neutral rating. The revision followed Target’s fourth-quarter earnings report and the company’s financial guidance for 2025, which was set slightly below the consensus estimates of analysts. According to InvestingPro data, Target currently trades at 13.6x earnings, with analyst price targets ranging from $100 to $165, suggesting significant market uncertainty. The stock appears undervalued based on InvestingPro’s Fair Value model.
Target recorded a modest 1.5% increase in comparable sales for the fourth quarter, contributing to its substantial $106.57 billion in trailing twelve-month revenue. However, the retailer experienced some sales softness in February, attributed to adverse weather conditions and wavering consumer confidence. During its Financial Community Meeting, Target underscored its commitment to enhancing customer engagement through investments in product offerings, digital capabilities, and supply chain improvements. The company also noted positive developments in operational metrics, including better in-stock positions, enhanced checkout processes, and quicker home delivery services.
Despite these internal improvements, the analyst expressed concerns about Target’s ability to attract a significant number of new customers based on current sales trends. While Target’s shares are considered relatively affordable, trading at approximately 12.5 times the midpoint of its earnings per share (EPS) guidance, the analyst pointed out potential risks that could affect the retailer’s performance in 2025. These risks include the impact of tariffs and the possibility of a decline in consumer spending.
To arrive at the new price target, Piper Sandler adjusted its multiple assumption from 14 times to 13 times the estimated EPS for 2026. The firm’s stance remains cautious as it monitors Target’s strategic efforts to engage customers and the broader challenges that may influence the company’s financial outcomes.
In other recent news, Target Corporation has seen several adjustments to its stock price targets from major financial institutions following its recent earnings reports and strategic updates. Goldman Sachs lowered its price target for Target to $142, maintaining a Buy rating, and highlighted the company’s potential for revenue growth over the next five years despite a conservative revenue outlook for FY25. Meanwhile, Citi also reduced its price target to $120, citing competitive pressures and potential challenges in fiscal year 2025, while maintaining a Neutral rating. Evercore ISI cut its price target to $130, noting the company’s alignment with market expectations but expressing caution over its first-quarter outlook.
JPMorgan adjusted its price target to $140, maintaining a Neutral rating, and emphasized Target’s focus on enhancing the customer experience and expanding its marketplace. Telsey Advisory Group maintained an Outperform rating with a $67 target, praising Target’s strong fourth-quarter performance and expansion in the Asia-Pacific region. These recent developments reflect a varied outlook on Target’s future performance, with analysts acknowledging both the potential for growth and the challenges posed by market conditions and competition.
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