Target (TGT) PT Lowered to $170 at Stifel
Stifel analyst Mark Astrachan lowered the price target on Target (NYSE: TGT) to $170.00 (from $177.00) while maintaining a Hold rating.
The analyst comments "Our F2024-F2025 estimates are largely unchanged following F1Q24 results where operating profit was ~2% below consensus. Despite the lower profit, we view the result as largely consistent with expectations, though stronger results from Walmart likely increased expectations for TGT shares. Company guidance for a return to positive comp growth and accelerating EPS growth is in line with consensus and reflective of more favorable comparisons and improving discretionary spending, particularly apparel, which improved in F1Q. That said, the company said comp growth in frequency categories (e.g., consumer staples) weakened sequentially. We think this reflects less inflation-based pricing passed through to consumers and lower unit volumes. While staples volumes generally remain challenged, we think Target could be losing share in certain categories which may have contributed to the company’s recent announcement to selectively lower prices on 5,000 frequency items through Summer 2024. We reduce our price target to $170, 10x F2025E EBITDA."