- Target has demonstrated that its luring its core customers base through its doors and attract prospective consumers who might be looking for bigger bargains and smaller tickets.
- As of now, target does not have the advantage of offering groceries, especially when consumers are cutting down on discretionary spending.
- But recent trends has shown that traffic has improved compared to previous months with a +0.3%. On top of that, Wal-Mart did report higher purchases on small items like bedding sheets etc.
- Credit Suisse also noted stabilization in the retailer’s credit-card business, which showed improvements in the delinquency trends.
- The firm boosted its 2009 earnings target to $2.90 from $2.37 and beyond the $2.52 consensus.
- On a Fundamental basis, this firm could be in line to for for a target of $49.30 using a 17 times multiple.
Technically
As of today, technically do look attractive. Long term down trendline since October has been broken and it is now holding better, above the $42.74 support level which has just been broken. Will keep an eye on it, but very cautious of making any additional purchases over the weekend.
Source: Barrons
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