Piper Jaffray Reiterates Overweight Rating, $71 PT on Target Corporation
In a report published Monday, Piper Jaffray & Co. reiterated its Overweight rating and $71.00 price target on Target Corporation (NYSE: TGT).
Piper Jaffray noted, “We expect December same-store sales in the flat to +2% range reflecting a challenging holiday season across retail, continued share loss to online competitors and a Target + Neiman Marcus collection that did not deliver the expected boost to sales. Our estimate compares to guidance of +LSD and consensus of +2.3%, although our estimate is likely in line with current sentiment. FQ4 EPS guidance could be revised downward or the current range narrowed, but with the stock down 7% over the past four weeks, this is probably priced in. Despite a disappointing holiday season, we remain positive on shares heading into 2013 due to the sale of the credit portfolio, opening of the first Canadian stores this spring, improving home category trends and an attractive valuation.”
Target Corporation closed on Friday at $58.57.
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