Piper Jaffray Remains Bullish on Target (TGT) Following 2Q EPS Beat

August 17, 2016 9:42 AM EDT
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Price: $68.59 +0.94%

Rating Summary:
    7 Buy, 22 Hold, 3 Sell

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    Up: 17 | Down: 27 | New: 7
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Piper Jaffray reiterated an Overweight rating and $86.00 price target on Target (NYSE: TGT) following the company's 2Q earnings report. TGT reported an $0.11 EPS beat, while comps were down 1.1%. Comparable sales in both Q3 and Q4 are expected down 2% to flat compared to current Street estimates of +1.2% and +1.7% for Q3 and Q4, respectively. Q3 EPS is expected in the range of $0.75 to $0.95 compared to consensus at $0.96.

Analyst Sean Naughton commented, "Target reported Q2 results this morning with comparable sales in-line with guidance and Street estimates while earnings beat by $0.11. Transactions were down 2.2% in the quarter while the average transaction amount was up 1.1%. Guidance was disappointing as the company expects sales pressure to continue throughout the back half of the year. Q3 and Q4 comp sales were guided down 2% to flat compared to the Street at +1.2% and +1.7% for Q3 and Q4, respectively. EPS is now expected in the range of $4.80 to $5.20, bracketing consensus at $5.13. While the forecast for continued comp pressure is disappointing, we believe the depressed valuation should limit downside today for TGT shares."

For an analyst ratings summary and ratings history on Target click here. For more ratings news on Target click here.

Shares of Target closed at $75.48 yesterday.

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