2012 Could Be Target's (TGT) Year, Buy It Now - Goldman Sachs

Goldman Sachs made positive comments on Target (NYSE: TGT) Monday saying the stock is "too inexpensive to ignore" and now is the time to buy.

The firm notes that shares are getting a trough multiple on trough EPS, which are being temporarily hit from $0.40-$0.50 of dilution in Canada. This come in contrast to peers like Wal-Mart (NYSE: WMT) which has seen multiple expansion. The firm sees 2012 as the year Target narrows the gap.

Goldman sees 20% upside in Target due to multiple expansion and EPS growth. They see three catalysts that could reverse investors perception: 1. TGT will be one of the yielding names in our coverage by 2013; 2. accelerating EBITDA growth as dilution from Canada wanes; 3. potential sale of its remaining credit card portfolio.

The firm reiterated their Buy rating and $57 price target on Target.

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 $49.82 yesterday.

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