Piper Sandler analysts reaffirmed an Overweight rating and a price target of $180.00 on Target Corporation (NYSE:TGT), following a constructive meeting with the company’s management, including CEO Brian Cornell.
The analysts shared insights from a recent store visit with CEO Brian Cornell and Target’s senior regional leadership. The key takeaway from this visit was Target’s emphasis on fundamental best practices, such as maintaining stock levels and effectively managing store resets. These strategies are expected to boost short-term performance and lay a strong foundation for long-term growth.
The analysts noted that from 2019 to the estimated end of 2023, Target has achieved a remarkable 38% growth in revenue, adding about $30 billion, which significantly outpaces the 23% growth seen at Walmart. In 2023, Target has been focusing on enhancing operational efficiency and discipline. This focus is anticipated to yield continued improvements in the coming year.
The analysts also believe that Target is strategically positioned to capitalize on the improving trends in medium-term discretionary spending.