Standpoint Research Starts Target (TGT) at Buy; Strong Buyback Plan for Low-Beta Name
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Price: $164.02 -0.8%
Rating Summary:
25 Buy, 19 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
Rating Summary:
25 Buy, 19 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
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Standpoint Research initiates coverage on Target (NYSE: TGT) with a Buy. PT $60.00.
Analyst, Ronnie Moas, said, "With the market pressing up against a six-month high, we are looking to lower our portfolio beta from its current level. We can do this by adding a low-beta name or dropping a high beta name. We have decided to add a low-beta name at this time and jump on TGT here now trading < $50 and 2001 prices adjusted for inflation. The shares have significantly under-performed Costco (Nasdaq: COST), Wal-Mart (NYSE: WMT) & the S&P-500. On the five-year chart, COST is + 40%, WMT is + 20%, the S&P-500 is at – 10% and TGT is -20%."
"I like the news out this morning regarding a $5 bln repurchase (over a period of 24-36 months), as it is a significant amount (15%) relative to the TGT market capitalization. When combined with the dividend yield (2.5%), there should be a floor here in the mid- to high $40s. So, the upside to our price target is nearly triple the downside risk."
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 $49.03 yesterday.
Analyst, Ronnie Moas, said, "With the market pressing up against a six-month high, we are looking to lower our portfolio beta from its current level. We can do this by adding a low-beta name or dropping a high beta name. We have decided to add a low-beta name at this time and jump on TGT here now trading < $50 and 2001 prices adjusted for inflation. The shares have significantly under-performed Costco (Nasdaq: COST), Wal-Mart (NYSE: WMT) & the S&P-500. On the five-year chart, COST is + 40%, WMT is + 20%, the S&P-500 is at – 10% and TGT is -20%."
"I like the news out this morning regarding a $5 bln repurchase (over a period of 24-36 months), as it is a significant amount (15%) relative to the TGT market capitalization. When combined with the dividend yield (2.5%), there should be a floor here in the mid- to high $40s. So, the upside to our price target is nearly triple the downside risk."
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 $49.03 yesterday.
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