Why Target Is an Analyst’s ‘Top Pick’ After Its Stock Plunged | Global News Avenue

Target(TGT) Shares rose on Monday after analysts at Oppenheimer named the stock a “top pick,” a week after the retailer posted a disappointing third-quarter earnings report. Stock price plummets.

Oppenheimer said Target’s stock price “appears to have bottomed/near the bottom” as the stock fell about 20% after quarterly results missed expectations and lowered its full-year forecast. The firm gives Target a “buy” rating and a price target of $165, which is about a 30% premium to Friday’s closing price and nearly $144 above the Visible Alpha average.

The stock rose more than 4% on Monday to over $130. However, so far this year, in stock It’s down about 8%.

In the long run, digitalization efforts should help

Oppenheimer will “take advantage of any dips in still difficult circumstances” discretionary context,” the analysts wrote. “Longer term, we believe the company is well-positioned share Driven by digital efforts, store investments, sell Success in Exclusive Brands, Competitors liquidation Over time, and collaborations with other brands/retailers. ”

Similar digital sales are a bright spot Target company’s earnings reporta year-on-year increase of 10.8%, while Comparable store sales down 1.9%.

The retailer admitted earlier this year that price increases had led to drove away some customers and recently announced daily and weekly sales schedules throughout the holiday season.