Investing.com - It’s now time to buy Target Corporation (NYSE:TGT) stock, according to HSBC, following the big-box retailer’s strong fourth-quarter earnings and its updated guidance.
HSBC has upgraded its investment stance on Target to ‘buy’ from ‘hold’, lifting its price target to $195 from $140.
“We upgrade our rating … given better earnings momentum ahead and feeling more comfortable about the strategy and FY25 guidance. Although the shares have run up recently, our revised TP still implies 15.7% upside from current levels,” HSBC analysts said, in a note dated March 5.
As part of its roadmap to resume top line growth, improve store traffic and gain market share, Target will continue to roll out product innovations, including a revamped Target Circle 360 loyalty program, the bank noted.
Target on Tuesday reported higher holiday-quarter earnings on a smaller-than-expected sales decline and predicted that annual comparable sales would come in largely above Wall Street expectations.
“Target is flipping the switch from go time to grow time,” HSBC said. “Target is a true omnichannel retailer, blending 2,000 physical stores with digital sales (18% of total sales in FY2024), where stores operate as hubs for digital orders.”