Target Corporation operates as a general merchandise retailer in the United States and Canada, offering offering a selection of merchandise, including consumables, seasonal, home products and apparel. The company was founded in 1902 and is based in Minneapolis, Minnesota.
TGT Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Target Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Target Corp ranked in the 55th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 45.17% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for TGT, they are:
The company has produced more trailing twelve month cash flow than 89.43% of its sector Consumer Defensive.
Target Corp's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 23.48% of tickers in our DCF set.
TGT's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than merely 23.48% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
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We last wrote about Target (TGT) in May, citing considerable upside potential – since then shares have run up over 30%. Our thesis was primarily built on an unjustified discount being applied by the market due to temporary margin headwinds. We continue to believe that Target is a quality brick-and-mortar...
Gainsboro Capital on Seeking Alpha | September 30, 2020
Let the battle of retailers begin. Amazon.com, Inc. (NASDAQ: AMZN ), Target Corporation (NYSE: TGT ) and Walmart Inc (NYSE: WMT ) will host an annual sale event on the same day. Amazon's annual Prime Days are on Oct. 13-14; Target's Deal Days, which launched in 2019, will also be held on Oct. 13-14; and Walmart's "Big Save" event will start on Oct. 11 and end on Oct. 15. Walmart's Game Plan: Walmart said it will specifically tailor its sales event to "meet the evolving needs of its customers who plan to shop differently … Full story available on Benzinga.com
As the holidays grow closer and unemployment remains high, and the U.S. grapples with the coronavirus, companies will have to think big to entice consumer spending. Amazon.com, Inc. (NASDAQ: AMZN ) remains the king of delivery, but Walmart Inc (NYSE: WMT ) and Target Corporation (NYSE: TGT ) have both built out their online and … Full story available on Benzinga.com
MINNEAPOLIS, Sept. 29, 2020 /PRNewswire/ -- Target Corporation (NYSE: TGT) today announced the return of Target Deal Days on Oct. 13 and 14, kicking off a holiday season that will feature nearly 1 million more deals than last year, Black Friday pricing all November long and an extended…