Target Corp (NYSE:TGT) reported growth in holiday sales and kept earnings outlook unchanged. Here are some key analyst takeaways.

Truist Securities On Target

Analyst Scot Ciccarelli reiterated a Hold rating while lifting the price target from $129 to $134.

Target's holiday sales growth of 2.8% was driven by a 3% rise in traffic, Ciccarelli said in a note. The company indicated a meaningful acceleration in discretionary sales, "marking an inflection in these categories," which have been weak in recent quarters, he added.

Although management raised their fourth-quarter comp guidance to around 1.5%, from the previous projection of flat comps, they kept the earnings guidance unchanged at $1.85- $2.45 per share, the analyst stated. This suggests that "promotions/discounts remain important to customer shopping activity," he further wrote.

DA Davidson On Target

Analyst Michael Baker maintained Buy rating and a price target of $153.

Target's comps for November and December rose by 2.0%, taking total sales up 2.8%, Baker said. The better-than-expected comp was driven by "apparel and toys, among other discretionary categories," he added.

In a better spending environment, Target benefits due to "their higher exposure to those areas," the analyst stated. Although the earnings guidance for the full quarter is "a fairly wide range," the consensus could "move to the higher end," he further wrote.

Check out other analyst stock ratings.

Goldman Sachs On Target

Analyst Kate McShane reaffirmed a Buy rating and price target of $164.

After reporting upbeat holiday sales, Target raised its top-line guidance for the fourth quarter a comp of +1.5%, versus consensus of +0.2%, McShane said. Digital sales grew by nearly 9% year-on-year, "reflecting over 30% growth in same-day delivery through Target Circle 360," she added.

Management reiterated their earnings guidance for the fourth quarter and the full year, of $1.85-$2.45 per share and $8.30-$8.90 per share, respectively, the analyst stated. "TGT also announced leadership changes across its stores, technology and digital teams," she further wrote.

Telsey Advisory Group On Target

Analyst Joseph Feldman reiterated an Outperform rating and price target of $150.

Target's better-than-anticipated holiday sales growth was driven by "success across key promotional periods, especially Black Friday and Cyber Monday," Feldman said.

"Importantly, discretionary sales meaningfully accelerated from 3Q24, particularly apparel and toys, and there was ongoing strength in frequency and beauty categories, partly offset by ongoing softness in home (also improved sequentially)," the analyst wrote. Although the earnings guidance range is wide, the company's performance may be "in the upper half of the guidance given the stronger sales and improvement in discretionary categories, which are higher margin," he further stated.

TGT Price Action: Shares of Target had declined by 0.38% to $132.79 at the time of publication on Friday.

Read More:
• Target’s Holiday Sales Surge 2.8%: Digital Growth And Black Friday Wins Drive Results

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