TGT - Embedded Expectations Analysis - 2020 11 05
Target Corporation (TGT:USA) currently trades near historical highs relative to UAFRS-based (Uniform) earnings with a 23.7x Uniform P/E. At these levels, the market has bullish expectations for the firm. However, management appears concerned about their challenges in assortment, their digital business, and their ability to sustain sales growthSpecifically, management may lack confidence in their ability to sustain the performance of their owned and exclusive brand portfolio, obtain new digital guests, and sustain sales growth. Furthermore, they may have concerns about the impact of near-term economic headwinds, challenges in assortment, and the impact of the significant adjustments to their Back-to-School categories. Management may also lack confidence in their ability to secure more investments that would help boost store footprint, sustain overall long-term growth, and secure opportunities for their in-store and online assortment
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.
In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:
- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.
- Corporate credit ratings remain years behind the fundamental underpinnings of company performance
- Stock analysts continue to make recommendations with deeply inherent biases
- Research firms have failed to break down the walls between credit, equity, and macroeconomic research
- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
The integrity of Valens Research is founded in our disciplined processes and analytics. No “star” analysts. No corporate advisory relationships. No-nonsense opinions and recommendations.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.