Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside* |
|---|---|---|---|---|---|---|---|
| 25 Nov, 24 | TGT | Buy | USD 125.01 | USD 137.51 | USD 143.76 | 55 days | 15.0% |
*Potential Upside (%) indicates the expected percentage increase from the Entry Price to the Target 2 Price.
Data Powered by EOD Historical Data (“EODHD”).
Target Corporation operates as a general merchandise retailer in the United States. The company offers apparel for women, men, boys, girls, toddlers, and infants and newborns, as well as jewelry, accessories, and shoes; and beauty and personal care, baby gear, cleaning, paper products, and pet supplies. It also provides dry grocery, dairy, frozen food, beverages, candy, snacks, deli, bakery, meat, and food service; electronics, which includes video game hardware and software, toys, entertainment, sporting goods, and luggage; and furniture, lighting, storage, kitchenware, small appliances, home decor, bed and bath, home improvement, school/office supplies, greeting cards and party supplies, and other seasonal merchandise. In addition, the company sells merchandise through periodic design and creative partnerships, and shop-in-shop experience; and in-store amenities. Further, it sells its products through its stores; and digital channels, including Target.com. Target Corporation was incorporated in 1902 and is headquartered in Minneapolis, Minnesota.
Lower Cash Conversion Cycle Days: 1.9 Days in Q3FY25 vs Industry Median of 13.8 Days
Higher Gross Margin: 28.4% in Q3FY25 vs Industry Median of 25.8%
Lower Return on Equity: 5.9% in Q3FY25 vs 7.9% in Q3FY24
Decreased Operating Income: USD 1,168.0mn in Q3FY25 vs USD 1,317.0mn in Q3FY24
Regulatory Compliance, Consumer Behaviour, Market Competition, Climate Change, Supply Chain, Inflation, etc.
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 125.01 | 106.0 | 137.51 | 143.76 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
Revenue increased by 1.1% YoY to USD 25,668.0mn in Q3FY25 vs USD 25,398.0mn in Q3FY24. The increase was driven by comparable sales and comparable digital sales, which were partially offset by a decline in comparable store sales.
Considering the 1.1% YoY increase in revenue for Q3FY25 to USD 25,668.0mn, compared to USD 25,398.0mn in Q3FY24. This growth was driven by a 10.8% rise in comparable digital sales, along with a modest 0.3% increase in comparable sales, the stock may trade at a slight premium compared to its peers. TGT Company anticipates steady comparable sales performance, GAAP and Adjusted EPS to range between USD 1.85 and USD 2.45 in Q4FY25 and between USD 8.30 to USD 8.90 for FY25, reflecting continued growth and resilience.
On the daily chart, TGT shows signs of recovery after its decline from the peak, finding support at a key horizontal level and forming a bullish candlestick pattern. The increasing volume at these support levels signals strong buyer interest, suggesting the potential for further gains. The RSI, currently at 35.65, is recovering from oversold territory and may soon enter bullish territory. Prices remain below the 21-period and 50-period SMAs, which act as resistance zones. Key support levels are at USD 00.01, while resistance levels are at USD 00.02, with a potential breakout above these levels.
Given the current trading levels, technical analysis and fundamental performance, a 'Buy' recommendation is given to the stock at the closing market price of USD 125.01, as of 22 November 2024.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Consumer Defensive Industry: Discount Stores
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| TGT Target Corporation |
0.54 0.52% | 104.90 | 14.56 | 14.06 | 0.59 | 4.22 | 0.72 | 8.56 |
| WMT Walmart Inc |
1.24 1.41% | 89.03 | 26.02 | 21.79 | 0.65 | 5.21 | 0.74 | 12.61 |
| COST Costco Wholesale Corp |
3.17 0.34% | 948.95 | 52.91 | 46.08 | 1.30 | 15.62 | 1.30 | 28.32 |
| WMMVY Wal Mart de Mexico SAB de CV ADR |
0.23 0.84% | 27.65 | 24.25 | 21.46 | 0.08 | 6.62 | 0.08 | 0.77 |
| WMMVF Wal Mart de Mexico SAB de CV |
0.06 2.19% | 2.80 | 24.35 | 21.88 | 0.08 | 6.75 | 0.08 | 0.77 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical issues prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Note 1: Past performance is neither an Indicator nor a guarantee of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 22 November 2024. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Disclaimer :
This report has been issued by StockNextt which has an Ontario Business Identification Number 1000958347 and British Columbia registration Number FM1051529 is a trade name under Kalkine Canada Advisory Services Inc. having Business Number 761925130BC0001. Kalkine Canada Advisory Services Inc. and StockNextt are collectively referred to as “StockNextt”, “we”, “us”, and “our”. The website https://stocknextt.com and associated pages are published by StockNextt. The information in this report and on the StockNextt website has been prepared from a wide variety of sources, which StockNextt, to the best of its knowledge and belief, considers accurate. StcokNextt has made every effort to ensure the reliability of information contained in its reports, newsletters, and websites. All information represents our views at the date of publication and may change without notice. The information in this report does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products. Our reports contain general recommendations for investing in securities and other financial products. StockNextt does not offer financial advice based upon your personal financial situation or goals, and we shall not be held liable for any investment or trading losses you may incur by using the opinions expressed in our reports, publications, market updates, news alerts and corporate profiles. StockNextt does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation. StockNextt’s general advice does not in any way endorse or recommend individuals, investment products or services for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a professional authorised financial planner and adviser. You should be aware that the value of any investment and the income from it can go down as well as up and you may not get back the amount invested. Please also read our Terms and conditions for further information. Employees and/or associates of StockNextt and its related entities may hold an interest in the securities or other financial products covered in this report or on the StockNextt website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.
Copyright © 2023 Krish Capital Pty Ltd. All rights reserved. No part of this website, or its content, may be reproduced in any form without our prior consent.
