Yesterday, Target Corp (NYSE:TGT) reported its first-quarter FY24 earnings and the following are the comments on the same by different analysts.
BMO Capital – Reiterates Market Perform, lowers price target from $170.00 to $155.00
Analyst Kelly Bania said that while Target's first-quarter results were in line with her expectations, investor expectations for continued GM% upside were clearly reigned in.
With signs of share losses widening in food & consumables, continued weakness in digital growth and signs of increasing same-day competition from Amazon.com Inc (NASDAQ:AMZN) and Walmart Inc (NYSE:WMT), the analyst lowered the price target to $155.
The analyst believes 6% EBIT margins remain the target, but the pace of achieving the target could take longer than expected.
RBC Capital Markets – Reiterated Outperform, lowers price target from $191.00 to $181.00
Analyst Steven Shemesh opined that with the majority of the easy gross margin wins in the rearview, the focus will shift back to demand trends /market share, for which visibility is fairly limited.
Consumer response to recent price cuts will be of particular importance, noted the analyst.
The analyst now estimates FY'24/FY'25 comp sales of +0.4%/+2.4% (+0.6%/ +3.3% prior) and EPS $9.50/$10.63 ($9.46/$10.60 prior).
Roth MKM – Reiterates Neutral, price target of $153.00
Physical comparable store sales have not improved with the passage of time (1Q'24 -4.8% y/y vs. 2Q'23 – 4.3% y/y), and the discretionary weakness/value seeking behavior and increased competition make growth uncertain, said the analyst.
For the holiday season and into FY'24, Target lost share against growing competitors, noted the analyst.
The analyst still sees headwinds from heavy overlap with Walmart should value-seeking increase, an aging store fleet and negative skew to regional population growth.
Though Target has an opportunity to monetize a growing, captive digital audience, digital sales are flat, said the analyst.
The analyst noted that profitability continues to improve y/y, but remains below pre-COVID levels, and the return to positive comp sales/ market share gains is uncertain.
Truist Securities – Reiterates Hold, lowers price target from $160.00 to $153.00
Analyst Scot Ciccarelli said the comp guide of 0%-2% for both the second quarter and the year is the company's worst 2-year performance since the Great Recession, even as competitors continue to grow, suggesting notable share losses.
While the softer sales in many discretionary categories are working against the company, since this is in such contrast to competitors, such as Amazon and Walmart, it clearly signifies market share losses, according to the analyst.
The recent price cuts on high frequency items and the eventual add-back of inventory create additional margin risk, noted the analyst.
Although the stock seems inexpensive at current levels, the absence of momentum and additional earnings risk lead the analyst to stay on the sidelines.
The analyst lowered' 24/'25 EPS estimates to $9.30/$10.45 from $9.40/$10.60.
Target stock has lost 2% in the last 12 months. Investors can gain exposure to the stock via Consumer Staples Select Sector SPDR Fund (NYSE:XLP) and Vanguard Consumer Staples ETF (NYSE:VDC).
Price Action: TGT shares are trading higher by 0.45% at $143.92 at the last check Thursday.
昨天,塔吉特公司(紐約證券交易所代碼:TGT)公佈了其24財年第一季度的收益,以下是不同分析師對此的評論。
BMO Capital —重申市場表現,將目標股價從170.00美元下調至155.00美元
分析師凱利·巴尼亞表示,儘管塔吉特第一季度的業績符合她的預期,但投資者對GM%持續上漲的預期顯然佔據了主導地位。
隨着食品和消耗品股票虧損擴大的跡象,數字增長持續疲軟,以及來自亞馬遜公司(納斯達克股票代碼:AMZN)和沃爾瑪公司(紐約證券交易所代碼:WMT)的同日競爭加劇的跡象,該分析師將目標股價下調至155美元。
分析師認爲,6%的息稅前利潤率仍是目標,但實現目標的速度可能比預期更長。
加拿大皇家銀行資本市場——重申跑贏大盤,將目標股價從191.00美元下調至181.00美元
分析師史蒂芬·謝梅什(Steven Shemesh)認爲,由於大部分輕鬆的毛利率都在後視中,重點將轉移到需求趨勢/市場份額上,而需求趨勢/市場份額的知名度相當有限。
分析師指出,消費者對最近降價的反應將特別重要。
該分析師現在估計,24財年/25財年的綜合銷售額爲+0.4%/+2.4%(之前爲+0.6%/+3.3%),每股收益爲9.50美元/10.63美元(前值爲9.46美元/10.60美元)。
Roth MKM — 重申中立,目標股價爲153.00美元
該分析師表示,隨着時間的推移,實體可比門店的銷售額並未改善(24年第一季度同比下降4.8%,而23年第二季度爲4.3%),自由裁量性疲軟/價值追求行爲和競爭加劇使增長變得不確定。
分析師指出,在假日季和24財年,塔吉特在競爭對手中失去了份額。
這位分析師仍然認爲,如果追求價值的增加、門店隊伍老化以及區域人口增長出現負面偏差,與沃爾瑪的嚴重重疊將帶來不利影響。
分析師表示,儘管塔吉特有機會通過不斷增長的專屬數字受衆獲利,但數字銷售卻持平。
這位分析師指出,盈利能力同比持續改善,但仍低於COVID之前的水平,而且恢復正銷售/市場份額增長尚不確定。
Truist Securities——重申持有,將目標股價從160.00美元下調至153.00美元
分析師斯科特·西卡雷利表示,儘管競爭對手持續增長,但第二季度和今年的業績均爲0%-2%,這是該公司自大蕭條以來最差的2年業績,這表明股票虧損顯著。
分析師表示,儘管許多全權委託類別的銷售疲軟對公司不利,但由於這與亞馬遜和沃爾瑪等競爭對手形成鮮明對比,這顯然意味着市場份額的損失。
分析師指出,最近對高頻商品的降價以及最終的庫存增加帶來了額外的利潤風險。
儘管該股在目前的水平上似乎很便宜,但缺乏動能和額外的盈利風險導致分析師保持觀望。
該分析師將25年的每股收益預期從9.40美元/10.60美元下調至9.30美元/10.45美元。
在過去的12個月中,目標股票下跌了2%。投資者可以通過必需消費品精選板塊SPDR基金(紐約證券交易所代碼:XLP)和Vanguard Consumer Staples ETF(紐約證券交易所代碼:VDC)獲得股票敞口。
價格走勢:在週四的最後一次支票中,TGT股價上漲0.45%,至143.92美元。