Street View: Target on track for margin recovery despite persisting headwinds
** Target TGT.N raised its full-year profit forecast on Wednesday and reported its first increase in quarterly comparable sales in more than a year, driven by price cuts that attracted more shoppers to its stores
** Median PT of 37 brokerages covering the stock is $180- LSEG data
RAISED OUTLOOK LOOKS REASONABLE, POTENTIALLY CONSERVATIVE
** Jefferies ("buy," PT: $195) believes TGT is likely to see margin expansion ahead as it laps inventory and inflationary pressures and drives rev improvement
** Piper Sandler ("neutral," PT: $156) says while TGT's margins are on the right path to recovery, it continue to look for a catalyst that would push its estimates meaningfully higher
** Brokerage adds TGT's raised outlook looks "reasonable and potentially conservative"
** "With a potential consumer trade-down and a shift away from discretionary goods, Target faces the largest potential macro headwinds, in our view," says Roth MKM ("neutral," PT: $157)
** TD Cowen ("hold," PT: $180) anticipates continued positive traffic, trend-right private brands driving sustainably positive comparables, and a focus on value-driven results from TGT
Reporting by Reshma Rockie George in Bengaluru
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