Target (TGT) PT Raised to $107 at Truist Securities

Truist Securities analyst Scot Ciccarelli raised the price target on Target (NYSE: TGT) to $107.00 (from $90.00) while maintaining a Hold rating.

The analyst commented: ". Our PT goes to $107 from $90, based on a 15x multiple on our FTM EPS est. We raised our target multiple from 13x prior to maintain a ~40% discount to the market.

As noted above, Target’s sales look to be better than our initial expectations for 2Q, which we believe may be due in part to the sharp decline in Temu’s sales. While the stock has moved up modestly in recent weeks (likely on the back of the better sales that we are detecting), we suspect that incremental upside is limited, given continuing competitive pressures and the potential for sizable reinvestments in price, technology and store standards. As we have previously highlighted, Walmart will have almost grown by almost another Target (~$86b) from CY21-CY25E, magnifying the competitive pressures. Making matters even more difficult, Target has now also stopped its practice of price matching against the likes of Walmart and Amazon. In short, while we think NT results have improved very modestly, Target’s longer-term competitive positioning remains challenged and we think they will likely need to make sizable investments (costing margin) to claw back share. Remain Hold."

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