TGT - Embedded Expectations Analysis - 2018 10 17
Target Corporation (TGT:USA) currently trades above recent averages relative to UAFRS-based (Uniform) Earnings with a 19.8x Uniform P/E. At these levels, the market is pricing in expectations for the firm to see profitability stabilize near recent levels, and management is confident about their ability to maintain growth in 2019, the roll out of their delivery from store service, and tailwinds from the closure of Toys “R†Us.Management is confident that they are prepared for continued growth in 2019, and about the roll out of their new delivery from store service in dense urban markets. Also, they are confident in their ability to return capital to shareholders, and in their expectations for stronger sales in their Toys and Baby categories, due to the recent closures of Toys “R†Us and Babies “R†Us. Additionally, they are confident that they've been carefully monitoring recent tariff announcements, and that they provide customers with great transparency and simplicity of pricing, both in stores, and online.
Target provides its customers everyday essentials and merchandise. The company sells an assortment of general merchandise and food. The majority of the company's general merchandise stores provide an edited food assortment, including perishables, dry grocery, dairy, and frozen items. The company's small format stores provide curated general merchandise and food assortments. The company's digital channels include merchandise assortment, including various items found in its stores, along with a complementary assortment. The company also sells merchandise through periodic design and partnerships. The company's owned brands merchandise include: A New Day?, Archer Farms?, Art Class?, Ava & Viv?, Cat & Jack?, and Cloud Island?, among others.
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