First Global Downgrades Target (TGT) to Market Perform; Remodel & Rewards Programs to Adversely Impact Gross Margin
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Price: $154.48 -0.66%
Rating Summary:
20 Buy, 27 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
20 Buy, 27 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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First Global downgraded Target (NYSE: TGT) from Moderate Outperform to Market Perform.
First Global analyst says, "We believe that TGT’s remodel program and 5% rewards program will lead to a significant increase in traffic to its stores, thereby driving its sales higher, though it will adversely impact the company’s gross margin due to investment in price. Moreover, TGT’s entry into Canada, with its acquisition of store leases of the Canadian discount retail chain, Zellers for $1.8 bn will result in additional depreciation and amortization expense in the initial period and impact its overall profitability, going forward, as the Canadian stores are expected to open only from FY14 onwards...We have lowered our FY12 and FY13 EPS estimates from $4.31 and $4.82 to $4.18 and $4.56 respectively."
For more ratings news on Target click here and for the rating history of Target click here.
Shares of Target closed at $49.36 yesterday.
First Global analyst says, "We believe that TGT’s remodel program and 5% rewards program will lead to a significant increase in traffic to its stores, thereby driving its sales higher, though it will adversely impact the company’s gross margin due to investment in price. Moreover, TGT’s entry into Canada, with its acquisition of store leases of the Canadian discount retail chain, Zellers for $1.8 bn will result in additional depreciation and amortization expense in the initial period and impact its overall profitability, going forward, as the Canadian stores are expected to open only from FY14 onwards...We have lowered our FY12 and FY13 EPS estimates from $4.31 and $4.82 to $4.18 and $4.56 respectively."
For more ratings news on Target click here and for the rating history of Target click here.
Shares of Target closed at $49.36 yesterday.
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