Target sales expected to increase as consumer spending in focus
TGT•Target shares rise ahead of quarterly results
Target TGT.N shares gained 1.6% to $153.38 on Tuesday ahead of quarterly results due before the bell on Wednesday, with investors watching for updates on consumer spending.
The major U.S. retailer is seen posting nearly a 4% year-over-year rise in second-quarter revenue to $26.14 billion and adjusted earnings per share of $2.33 versus $2.05 a year ago, according to LSEG data.
In its first-quarter report, Target doubled its annual sales growth forecast as the company continues its turnaround, but maintained a cautious outlook citing a stretched consumer.
With the move, Target stock has rallied about 57% year to date, well outperforming the 0.2% decline in the S&P Consumer Staples sector .SPLRCS and the 12.5% gain in the S&P 500 .SPX.
The stock recently traded at 17 times forward earnings, above its five-year average of 15 times.
Of 40 analysts, 13 rate the stock "strong buy" or "buy", 24 "hold" and 3 "sell"; the median price target is $147.50, up from $130 a month ago and $126 on May 18.
