Nomura Sees 4 Reasons to Buy Target (TGT) Today, PT Raised to $136

Nomura/Instinet analyst Michael Baker raised the price target on Target (NYSE: TGT) to $136.00 (from $123.00) offering 4 reasons to buy shares even after the recent run.

1) This was the eighth quarter in a row of comps better than the industry and better than Walmart.

2) Online sales were up 31%. Online sales accounted for 7.1% of TGT’s sales in 2018 and 7.3% year to date in 2019 and contributed 0.7-2.1% of TGT’s comps during that time.

3) EBIT dollar growth is accelerating as past investments begin to bear fruit.

4) As a result of of the 3Q beat and improving comp trends, estimates are increasing and likely to increase again in future quarters.

The analyst reiterated the Buy rating stating "Our key positive themes of share gains through improved online distribution capabilities and merchandising, as well as improving profits, are playing out, in our view. These ideas, along with a still-unchallenging multiple, support our Buy rating".

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