Target Corp (TGT)

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Earnings Preview: Target Corp. (NYSE: TGT)
By: 24/7 Wall St. | May 15, 2023

• Here is a look at four companies scheduled to report results later on Tuesday or first thing Wednesday morning.

Target

Target Corp. (NYSE: TGT) posted its 52-week high one year ago and plummeted after the company missed the consensus EPS estimate by nearly 30%. The stock has recovered somewhat but is still down more than 27% for the 12-month period.

Investors and analysts are concerned that consumer spending has slowed and will slow more in the remainder of the year. Macy’s and Nordstrom shares are down by around the same amount as Target, while Walmart, which reports Thursday morning, has posted a share price gain of nearly 6% over the past 12 months, and TJX, reporting Wednesday morning, has added 41.2% in the period. Target, which is lumped together with the more upscale retailers, also reports results Wednesday morning.

Of 36 analysts covering Target, 20 have a Buy or Strong Buy rating and 16 rate it at Hold. At a share price of around $158.00, the upside potential based on a median price target of $180.00 is about 13.9%. At the high price target of $220.00, the upside potential is 39.2%.

The consensus first-quarter 2024 revenue estimate is $25.31 billion, down 19.4% sequentially but up 0.5% year over year. Adjusted EPS are forecast at $1.79, down 5.3% sequentially and by 18.3% year over year. For the full year ending in January, analysts expect Target to report EPS of $8.42, up almost 40%, on sales of $111.23 billion, up 1.9%.

Target stock trades at 18.7 times expected 2024 EPS, 14.9 times estimated 2025 earnings of $10.56 and 12.9 times estimated 2026 earnings of $12.19 per share. The stock’s 52-week range is $137.16 to $223.30. The company pays an annual dividend of $4.32 (yield of 2.73%). Total shareholder return for the past year was negative 25.79%.

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