Main to remember
- Target should point out the results of the first quarter before the opening bell on Wednesday, with moderately optimistic analysts on the retailer stock.
- Sales of comparable stores should have dropped from 1.5% from one year to the next, although some analysts have warned that metrics could have reduced by 4%.
- Some analysts see the drop in its annual forecasts in a context of uncertainty around prices and the expected decline in sales of comparable stores.
Target (TGT) should display the results of the first quarter before the bell on Wednesday, analysts are cautiously optimistic about the Stock of the retailer.
Eight of the 13 analysts that cover Target and are followed by Visible Alpha call the title a “restraint”, the other five note the retailer as a “purchase”. The title, which has lost more than a quarter of its value this year, has an average price target of $ 117.54, suggesting an increase of almost 20% compared to its fence level on Friday.
The objective is expected to declare the share per share of the first quarter of $ 1.64 on income that fell to $ 24.41 billion. Sales of comparable stores should have dropped by 1.5%, although some analysts have warned that metrics could have reduced by 4%.
In the last quarter, Target reported better than expected in the fourth quarter, but warned that the prices and the worsening of consumers were likely to affect his future performance.
Analysts expect a cup of outlook
In a note leading to the retailer’s report, JPMorgan analysts wrote that they thought that the objective is likely to reduce its forecasts for sales and profits in the full year, but said that they “remain on the positive side of the long -term relevance of the company for the consumer”.
Morgan Stanley analysts also expect a drop in advice, because “sales have probably decelerated YTD more, due to a combination of consumer feeling, the overall slowdown in discretionary categories (to which TGT over-indexes, compared to its Broadline peers) and specific challenges at TGT.” “”
Despite the short -term weakness, Oppenheimer said they “would benefit from any drop” because they remain optimistic about Target’s long -term trajectory. UBS analysts, on the other hand, said that the objective “must stabilize its market share, define its positioning on the market, demonstrate the sustainability of its profitability and present its ability to collect appropriate yields”.
