Target (TGT) expected to beat Q1 expectations, aiming for sales growth, with positive forecast.

From Nasdaq: 2024-05-22 00:03:05

Target (NYSE: TGT) is set to report its fiscal Q1 results on May 22, expected to outperform with revenues and earnings beating expectations. Target’s shares have risen this year on hopes of a growth rebound. The retailer anticipates a 3-5% sales decline in Q1, aiming for flat to 2% sales growth for the full fiscal year, unveiling a new subscription tier to attract customers.

TGT stock has underperformed the S&P 500 in recent years, with returns of 31% in 2021, -36% in 2022, and -4% in 2023. A forecast values Target at $178 per share, 11% higher than the current price. TGT’s valuation, with a P/E multiple of 18.9x in fiscal 2024, suggests a price of $178, nearly 11% above the current market price.

Revenue and EPS are seen to slightly surpass consensus estimates, with Q1 2024 revenues forecast at $24.9 billion. Target’s sales fell by 2% in 2023, with comparable sales down 3.70%, mainly due to weak demand for discretionary goods. EPS is expected to be marginally above estimates, reflecting improved profitability despite weak sales. Target’s gross margin and operating margin showed significant improvements in 2023, with earnings per share up 50% year-over-year.

Comparisons with peers show that Target’s stock has returned -1% MTD in May 2024, 12% YTD in 2024, and 122% in total from 2017-24. In contrast, the S&P 500 has achieved 5% MTD in May 2024, 11% YTD in 2024, and 137% in total from 2017-24. Target’s Reinforced Value Portfolio has seen returns of 6% MTD in 2024, 6% YTD in 2024, and an impressive total return of 651% from 2017-24.



Read more at Nasdaq: Gaining 12% Year To Date, Will Q1 Results Drive Target’s Stock Higher?