HSBC analyst Joe Thomas upgraded Target to Buy and raised his price target on the stock to $190 from $125 per share, citing a traffic-driven recovery. In a note Wednesday, Thomas said Target's second-quarter results support the view that a turnaround is gaining momentum, with comparable sales rising 3.8%, including a 2.7% rise in store-originated sales, while underlying profits and EPS came in around 5% ahead of consensus. He said growth was driven primarily by footfall rather than higher ticket values, indicating Target is rebuilding customer traffic without material cannibalisation of its store base. HSBC sees potential for earnings forecasts to be exceeded in the short and medium term, noting year-to-date two-year comparable sales growth of 1.7% and that its estimates require only 0.5% two-year growth in the second half to deliver full-year assumptions. The bank's valuation is based on an 18x multiple applied to its revised FY27e EPS estimate of $10.61, in line with Target's five-year average historical PE multiple.
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Hewlett Packard Enterprise CoTarget CorporationHSBC upgraded Target to Buy and raised its price target to $190, citing a traffic-driven turnaround and Q2 beat.
HSBC Holdings PLC