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Target Corp - Stock Quote TGT

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Morningstar's Target Corp Stock Analysis

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Is it the right time to buy or sell?
Find out with Morningstar Investor
Is it the right time to buy or sell?
Find out with Morningstar Investor

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5-Star Price

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Economic Moat

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Capital Allocation

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Despite Near-Term Assortment Challenges, Target’s Value Orientation Should Resonate Amid Inflation

Zain Akbari, CFA Equity Analyst

Business Strategy and Outlook

| Zain Akbari, CFA |

Target has adapted to retail digitization, but we believe it faces a highly competitive environment with negligible customer switching costs, exacting pressure to elevate service while holding prices low. Without the scale of Walmart and Amazon or the differentiated business models that characterize moat-endowed defensive retailers we cover, we expect no-moat Target will be vulnerable to the competitive onslaught.

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Key Statistics - TGT

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Target Corp's Company Profile

Business Description

With 1,926 stores (as of the end of fiscal 2021), Target is a leading American general merchandise retailer, offering a variety of products across several categories, including beauty and household essentials (26% of fiscal 2021 sales), food and beverage (19%), home furnishings and décor (19%), hardlines (18%), and apparel and accessories (17%). Most of Target’s stores are large, averaging more than 125,000 square feet. The company has a significant e-commerce presence, deriving around 19% of sales from the channel (up from about 9% in fiscal 2019, before the pandemic). In addition to its namesake stores, Target owns Shipt, an online same-day delivery platform. After it exited Canada in 2015, virtually all of Target’s revenue is generated from the United States.

Contact
1000 Nicollet Mall
Minneapolis, MN, 55403
T +1 612 304-6073
Sector Consumer Defensive
Industry Discount Stores
Most Recent Earnings Apr 30, 2022
Fiscal Year End Jan 29, 2023
Stock Type Aggressive Growth
Employees 450,000

Target Corp's Related News

Stock Analyst Update

Excess Inventory to Hold Target’s Near-Term Earnings in Check, but Our Long-Term View Is Intact

We are encouraged that management cites healthy increases in traffic and sales. Our fair value estimate should dip slightly.
Zain Akbari
Market Update

Where Does the Supply Chain Crisis Stand Now?

There are signs the tide may be turning even as challenges continue in some sectors.
Jakir Hossain
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Retailers' Earnings Results Send Warning Signs About the Consumer

Inflation is having an impact on spending patterns, threatening profit margins.
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Markets Brief: The Fed's Favorite Inflation Indicator on Deck

Stocks avoid bear market, barely, as retailers get slammed.
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Market Update

Which Funds Have the Biggest Target Stock Exposure?

These growth funds and value-tilting dividend strategies had the largest weights in the stock.
Katherine Lynch
Stock Analyst Update

Market Overreacts to Target's Q1 Results

It wasn't a pretty quarter. We plan to cut our fair value estimate by about 10%.
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Raising Target's Fair Value on Omnichannel Strength

We suggest investors await a more attractive entry point.
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The market has already baked many retailers’ holiday sales potential into pricing, but there are still opportunities.
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We're likely to increase the company's fair value estimate.
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