Target Corp
TGT: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$597.00 | Pkhd | Yhtmcynjn |
Target Should Rise Above Near-Term Pressures in Discretionary Categories; Shares Attractive
Despite no-moat Target shares’ low-teens percentage plunge in the wake of disappointing third-quarter earnings, our $167 per share valuation should not change materially, as we attribute the softness to near-term factors. Consequently, our long-term forecast remains intact (mid-single-digit yearly revenue growth, high-single-digit operating margins forecast on average). We see opportunity in the shares, as prevailing sentiment seems overly fixated on near-term woes.