Target Corp (TGT)

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Earnings Preview: Target Corp. (NYSE: TGT)
By: 24/7 Wall St. | November 14, 2022

• Here is a look at four companies, including two Dow components, on deck to report results first thing Wednesday morning.

Target

Target Corp. (NYSE: TGT) posted its 52-week high on November 15 of last year, and shares closed Friday down more than 50% from that high. On Friday, the company announced a new store design that is both larger and more focused on its same-day delivery service and curbside pickup. Target stores currently fulfill more than 95% of the company’s digital orders, so using the store locations as fulfillment centers allows Target to keep transportation costs lower than online-only retailers like you-know-who.

Of 32 analysts covering the company, 22 have a Buy or Strong Buy rating and 10 others rate the shares a Hold. At a price of around $173.30 a share, the upside potential based on a median price target of $190.00 is about 9.6%. At the high price target of $223.00, the upside potential is 28.7%.

The consensus third-quarter 2023 revenue estimate is $26.4 billion, up 1.4% sequentially and by 2.9% year over year. Adjusted EPS are forecast at $2.18, up more than 450% sequentially and down 28.1% year over year. For the full year ending in January, analysts expect Target to report EPS of $8.04, down 40.7%, on sales of $109.67 billion, up 3.5%.

Target stock trades at 21.6 times expected 2023 EPS, 14.6 times estimated 2024 earnings of $11.90 and 13.0 times estimated 2025 earnings of $13.38 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 2.49%). Total shareholder return for the past year was negative 32.1%.

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