BofA Securities Reiterates Buy Rating on Target (TGT)

BofA Securities analyst Robert Ohmes reiterated a Buy rating and $190.00 price target on Target (NYSE: TGT)

The analyst comments "Freight continues to support GM, and shrink over time Freight should continue to support GM as the rolling rate is still currently favorable and in aggregate, TGT is relatively locked in with freight rates for the remainder of 2024. TGT has also taken several actions to address shrink, which has had a -120bps margin impact since pre-pandemic, including adding more security to front of stores and locking up certain products. While loss rates were still up y/y in 1Q, TGT expects shrink to level off in 2024 before starting to come down. TGT does not expect to recover all of the shrink headwind (maybe half), but remains encouraged that it can get back to a 6% operating margin even if shrink doesn’t come all the way back."

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 $146.77 yesterday.

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