Target Corp (TGT)

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Earnings Preview: Target Corp. (NYSE: TGT)
By: 24/7 Wall St. | August 15, 2022

• Here is a look at three companies scheduled to report quarterly results first thing Wednesday morning.

Target

Target Corp. (NYSE: TGT) stock has tumbled by about 34% since mid-May, when the company warned that inventory overhang would weigh on second-quarter results. The stock plunged 40% on the report. Shares have staged something of a comeback since dropping to a 52-week low in mid-June, largely due to less concern about inflation and recession. There is still little evidence that Target has solved its inventory forecasting issues yet, and investors will want to hear what the company plans to do to get margins back up.

Of 31 analysts covering the company, 21 have a Buy or Strong Buy rating and 10 others rate the stock at Hold. At a share price of around $172.50, the upside potential based on a median price target of $185.00 is about 7.2%%. At the high price target of $231.00, the upside potential is nearly 40%.

The consensus second-quarter 2023 revenue estimate is $26.09 billion, up 3.7% sequentially and 3.7% higher year over year. Adjusted EPS are forecast at $0.71, down 67.4% sequentially and by 80.5% year over year. For the full year ending in January, analysts expect Target to report EPS of $8.40, down 38%, on sales of $109.84 billion, up 3.6%.

Target stock trades at 20.5 times expected 2023 EPS, 14.2 times estimated 2024 earnings of $13.52 and 12.8 times estimated 2025 earnings of $13.44 per share. The stock’s 52-week range is $137.16 to $268.98. The company pays an annual dividend of $4.32 (yield of 2.5%). Total shareholder return for the past year was negative 33.1%.

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