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Analysts Weigh-In On Target (TGT) After Credit Card Master Trust Data

June 22, 2009 2:48 PM EDT
TGT Hot Sheet
Rating Summary:
    9 Buy, 10 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
We have a few analysts commented on Target (NYSE: TGT) after the company released improving credit card Master Trust data, which showed that net charge-offs in May were 15.5%, versus 15.7% in April. Gross charge-offs also declined to 16.4% in May, down from 16.7% in April.

Piper Jaffray acknowledged the positives, but was still cautious saying, "Headlines on the portfolio are positive as receivable growth moderates, delinquencies slow and net charge-offs begin to decline. However, we are incrementally cautious as the rate of account dollars moving from 30-60 days late to 60-90 days late has accelerated." The firm reiterated their Neutral rating and $46 price target on TGT.

Goldman Sachs said, "the inflection point in chargeoffs appears to be at hand. We were expecting a peak in May/June with a decline beginning in June/July, and thus May's sequential improvement comes as a pleasant surprise." Goldman, which added TGT to its Buy List on June 15, reiterated their Conviction Buy and $51 price target.

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