Jefferies Adjusts Estimates For Target

Jefferies adjusted its estimates for Target Corporation TGT Wednesday and maintained a Hold rating with a $67 price target.

Analyst Daniel Binder raised the “U.S. comp store sales estimate to +2.5 percent from +2 percent (guidance is 2 percent, Street is 2.5 percent).

“Based on our field research, we think the company saw good holiday results and benefited from easy comparisons to the credit breach LY, an improving macro backdrop, lower oil prices and better weather.”

Binder raised the firm’s EPS estimate to $1.26 from $1.23. “Recent share performance reflects the enthusiasm around lower gas prices and easy comparisons as well as a willingness to look through Canadian results on hopes of a turnaround or exit.”

“The next big data point beyond Q4 will be a clearer turnaround plan from the company’s new CEO, so we look forward to that in determining whether improved comp store sales will be sustainable beyond easy compares and oil prices,” according to Binder.

The $67 price target was based on a 16.5x multiple using a FY17 (Jan 17) estimate of $4.08.

Target closed at $76.77, up 3.8 percent.