Target (TGT) PT Raised to $200 at UBS

UBS analyst Michael Lasser raised the price target on Target (NYSE: TGT) to $200.00 (from $185.00) while maintaining a Buy rating.

The analyst comments "We see TGT’s 2Q results as an initial but powerful first step in restoring the upside case on the company’s stock. There was much more to like than not to like from the release, highlighted by brisk traffic growth, healthy gross margin gains, accelerating other income growth (due in part to double-digit advertising revenue growth), and the return of share repurchases. From here, the next building block in the stock providing a handsome return is consistency. The knock on this retailer is that its trends are too volatile driven by a heavy discretionary mix. We think the retailer could build on what this quarter began. This means that not only could estimates move higher, but the multiple has a good chance to move to the higher end of its 5-year range (12x-18x) as the market sees the company’s consistency returning. TGT is still likely trading in the 15x-16x P/E range on the market's '25 estimates, which is below its 5-year avg. of ~17x. Overall, we think TGT's 2Q was replete with positive takeaways, including."

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