Target Corp. was initiated at buy at Buckingham Research Group, with analysts saying they are “impressed” with signs of improved merchandising and execution. The price target is $96. Target shares are trading at about $80 on Tuesday. Free cash flow was spurred by the company’s decision to exit Canada and the sale of its pharmacy business, analysts said. Increasing dividends and share repurchases (estimated at $4 billion for fiscal 2016, up from $3.4 billion in fiscal 2015) were also cited in the Tuesday note.”The company has addressed e-commerce
competition and refocused on core categories including fashion (style), baby, kids, and wellness,” analysts wrote. “The result has been 30% e-commerce revenue growth and comps at core categories increasing in the mid-to-high single-digit range,” analysts said. Target shares are up 2.3% in Tuesday trading and 10.6% for the year-to-date. The S&P 500 is down 4% for the year so far.
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