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Here's Every Analyst Rating And Price Target On Target Ahead Of Q3 Earnings

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Here's Every Analyst Rating And Price Target On Target Ahead Of Q3 Earnings
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Target Corporation (NYSE: TGT) is expected to deliver lower earnings and sales when it reports its third-quarter financial results on November 16.

Broad Expectations

Wall Street expects Target earnings to drop 3.5 percent year-over-year to $0.83 a share and sales to fall 7.5 percent to $16.3 billion. In the same quarter last year, the company earned $0.86 on revenue of $17.61 billion.

In the past two quarters, Target’s earnings have managed to top the Street's view. Over the past 90 days, the consensus earnings estimates have been down by $0.06 to $0.83.

CVS And Wal-Mart Threats

The Minneapolis-based retail giant will likely feel the pinch from heightening online competition such as that from Wal-Mart Stores, Inc. (NYSE: WMT) and Amazon.com, Inc. (NASDAQ: AMZN). In addition, the company’s struggling food business will also weigh on the results.

Jefferies analyst Daniel Binder thinks Target has established a low bar of SSS of 0 to -2 percent apart from a $0.75–$0.95-wide EPS range guidance. The firm thinks the retailer could achieve 0 to -1 percent SSS and maintains its EPS projection of $0.87, pointing out weaker sales trends and enough space to respond to Wal-Mart. Rival Wal-Mart reports on November 17.

Another challenge for Target is to generate better traffic with CVS Health Corp (NYSE: CVS)’ ownership of the pharmacy business. CVS, in its third quarter report, said it is currently experiencing slowing prescription growth in the overall market as well as a soft seasonal business.

“[V]ery recent pharmacy network changes in the marketplace are expected to cause some retail prescriptions to begin migrating out of our pharmacies this quarter,” CVS President and Chief Executive Officer Larry Merlo, said in a press release.

It's Not All Foreboding

On the positive side, Target may benefit from a strong back-to-school season, and better sales at its new children’s lines.

Voices From The Street

Following are the analyst ratings and price targets on Target:

  • Barclays: Underweight, price target of $65.
  • Citigroup: Buy, $80 PT.
  • Cowen & Co.: Market Perform.
  • Goldman Sachs: Neutral, $71 PT.
  • Guggenheim: Neutral.
  • JPMorgan: Neutral, $78 PT.
  • Morgan Stanley: Underweight, $67 PT.

At last check, shares of Target were down 0.94 percent at $71.50.

Image Credit: By Mjs92984 (Own work) [CC BY-SA 4.0 ], via Wikimedia Commons

Latest Ratings for TGT

DateFirmActionFromTo
Aug 2018UBSMaintainsNeutralNeutral
Jun 2018SusquehannaTerminatesPositivePositive
Feb 2018Credit SuisseInitiates Coverage OnOutperform

View More Analyst Ratings for TGT
View the Latest Analyst Ratings

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