Target Corp
TGT: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$549.00 | Vpvwb | Ynrwmgykhb |
Discretionary Categories’ Slump a Near-Term Challenge for Target, but Long-Term Prospects Solid
Business Strategy and Outlook
Target has adapted to retail digitization, but we believe it faces a highly competitive environment with negligible customer switching costs, exacting pressure to elevate service while holding prices low. Without the scale of Walmart and Amazon or the differentiated business models that characterize moat-endowed defensive retailers we cover, we expect no-moat Target will be vulnerable to the competitive onslaught.