Breaking News
0

Wells Fargo Upgrades Target to Overweight as Market is 'Too Pessimistic on 2023'

Stock Markets Aug 01, 2022 08:18
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
TGT
-2.24%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Senad Karaahmetovic

A Wells Fargo analyst upgraded shares of Target (NYSE:TGT) to Overweight from Equal Weight with a price target of $195 per share, up from the prior $155 a share.

He says Target offers “an underappreciated earnings recovery at the right price,” hence the opportunity to get on the long side given the selloff in shares (down c30% YTD).

The analyst outlined 4 key factors behind his upgrade call:

“1) The company deserves some criticism for its inventory missteps, but it's not alone (ahem...WMT) and management's decisive action should help protect pandemic share gains (the real prize at the end of the day). 2) TGT took the earliest and biggest margin hit in retail, suggesting relatively lower risk from here and a faster recovery. 3) Investors seem too pessimistic on recovery earnings; we see EPS of $12.70 when the dust settles in 2023 vs. a buy-side bar that seems closer to $11. 4) Favorable risk/reward,” he wrote in a client note.

Besides the $195 per share price target, the analyst also set a $220 bull case. The new price target implies an upside of about 20%.

Target shares are up about 2% in premarket Monday.

Wells Fargo Upgrades Target to Overweight as Market is 'Too Pessimistic on 2023'
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email