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What’s the Expected Upside in Target Stock?

Adrian Stevens
What’s the Expected Upside in Target Stock?

Target Shone during the Holidays—Why Didn't Its Stock?(Continued from Prior Part)## Ratings and target priceThe majority of Wall Street analysts maintain neutral outlooks on Target (TGT) stock. Analysts expect Target to benefit from increased consumer spending. Its comps are likely to sustain momentum in the coming quarters driven by growth in its traffic.Target’s investments in price, expanded digital offerings, store remodelings, the opening of small-format stores, and exclusive brand launches are expected to support its top line growth. However, pressure on its margins is expected to hurt its stock.Among the 26 analysts providing ratings on Target stock, 16 have given it “holds,” nine have given it “buys,” and one has given it a “sell.” Analysts have a consensus target price of $82.12 per share on TGT stock, which implies a potential upside of 20.3% based on its closing price of $68.29 on January 10.## What Wall Street recommends for TGT’s peersThe majority of analysts have favorable outlooks on Costco (COST) stock. Costco continues to generate strong sales and earnings growth and outperform its peers. Among the 28 analysts following COST, 17 have given it “buy” ratings, and 11 have given it “holds.” Analysts maintain a consensus target price of $237.70 on the stock, which indicates a potential upside of 12.8%.Meanwhile, of the analysts covering Walmart (WMT) stock, 18 have given it “holds,” and 14 have given it “buys.” Analysts have a consensus target price of $106.81 on WMT, which indicates a potential upside of 12.5% based on its closing price of $94.96 on January 10.Browse this series on Market Realist: * Part 1 - Target Shone during the Holidays—Why Didn’t Its Stock? * Part 2 - What’s in the Offing for Target Stock? * Part 3 - Why Target’s Digital Sales Could Grow at a Healthy Rate