Upcoming Star Wars Events Provides Catalyst for Target (TGT), Piper Jaffray Says

Piper Jaffray analyst Sean Naughton reiterated an Overweight rating and $91 price target on Target (NYSE: TGT) highlighting upcoming Star Wars merchandise release and special Target in-store events which they see as a catalyst
for continued toy sale momentum.

Start Wars is takes over stores this coming Friday. 207 Target stores (~11.5% of store base) are set to celebrate with special "Force Friday" in-store events on September 4th.

"We continue to recommend Target shares given the compelling valuation and sales setup for the back half of the year. Target's toy sales were quite strong in Q2, and we think licensed products can continue to drive results," Naughton commented. "Specifically, we point to the upcoming Star Wars merchandise release and special Target in-store events as a catalyst for continued toy sale momentum. With the latest Star Wars hitting theaters December 18th, we think licensed toy sales can help drive Q4 comps and provide a much needed sales boost during the important holiday season."

Star Wars and toy sales broadly could provide nice Q4 comp lift as NPD projects toy sales up ~6.2% in 2015 with an addressable market around $22B, the analyst notes.

The analyst also said data points to solid Q3 start and "Back-to-School" season. "Based on ShopperTrak's NRSE weekly retail sales index, we estimate retail sales are off to a +3.2% start to Q3," the analyst commented.

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 $75.39 yesterday.

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