Target has been on fire this year. HSBC sees more upside ahead
Analyst Joe Thomas upgraded the merchandise retailer giant to buy from hold.
TL;DR
- HSBC analyst Joe Thomas upgraded Target to 'buy' from 'hold', raising the price target significantly.
- Target's second-quarter comparable sales rose 3.8%, with notable recoveries in beauty, food, and household essentials.
- Back-to-school apparel sales grew in the double digits, suggesting stores are not being cannibalized.
- Potential tariff refunds and significant investment in the in-store guest experience are expected to boost Target's performance.
- Despite a majority of analysts rating Target as 'hold', the stock is up 62% this year and poised for its best performance since 2019.