Target shares could reach $200 resistance as Bank of America assigned a buy rating

Target Corp. (NYSE: TGT) reported its financial results for the fiscal fourth quarter on Tuesday that topped analysts’ estimates for profit and sales. The company attributed its hawkish performance to digital sales that jumped over 100% in recent months.

Target shares jumped roughly 2.5% up on market open on Tuesday but tanked almost 8% in the next hour. The stock is now trading close to the per-share price at which it started the year 2021. Target has gained just under 100% since a low in the last week of March 2020 – a great news for value investors.

Target’s Q4 financial results versus analysts’ estimates

Target Corp said that its net income in the quarter that concluded on 30th January came in at £990 million, that translates to £1.96 per share. In the same quarter last year, its net income was capped at a much lower £597.88 million, or £1.17 per share.

Adjusted for one-time items, the retail corporation earned £1.91 per share versus the year-ago figure of £1.21 per share. Target said that it generated £20.32 billion of revenue in Q4, that represents a 21.1% annualised growth.

According to FactSet, experts had forecast the company to report £19.65 billion of revenue in the recent quarter. Their estimate for adjusted per-share earnings stood at £1.82. In comparison, Target posted £17.03 billion of revenue in the prior quarter (Q3).

The Minneapolis-based company noted a 20.5% year over year increase in its fourth-quarter comparable-store sales versus a narrower 17.1% growth expected. As per target, the average ticket increased 13.1% in the recent quarter while traffic jumped 6.5%.

Target reports a 118% growth in its digital same-store sales

The eighth-largest U.S. retailer saw a massive 118% growth in its digital same-store sales, that it said, made up roughly 66% of its total quarterly sales. Target didn’t repurchase any shares in Q4. By the end of the quarter, its buyback program had £3.23 billion available.

The S&P 500 component refrained from giving its guidance for the future on Monday due to the COVID-19-related uncertainties. In separate news from the U.S., clothing company, Kontoor Brands also published its quarterly earnings report on Monday.

Target Corp. performed largely upbeat in the stock market last year with an annual gain of close to 40%. At the time of writing, it is valued at £63.60 billion and has a price to earnings ratio of 23.47.

The post Target tops analysts’ estimates for profit and sales in the fourth quarter appeared first on Invezz.



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