AllAnalyst Report
logoMorningstarNovember 29, 2022

Target Corporation: Despite Near-Term Pressures, We Believe Market Sentiment Underestimates Target's Strength

Symbols
TGT
Sector(s)
Consumer Defensive
Rating
Current Price
$176.76
Fair Value
Economic Moat
Stewardship
Summary

With 1,926 stores (as of the end of fiscal 2021), Target is a leading American general merchandise retailer, offering a variety of products across several categories, including beauty and household essentials (26% of fiscal 2021 sales), food and beverage (19%), home furnishings and décor (19%), hardlines (18%), and apparel and accessories (17%). Most of Target’s stores are large, averaging more than 125,000 square feet. The company has a significant e-commerce presence, deriving around 19% of sales from digital channels (up from about 9% in fiscal 2019, before the pandemic). In addition to its namesake stores, Target owns Shipt, an online same-day delivery platform. After it exited Canada in 2015, virtually all of Target’s revenue is generated from the United States.

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Analyst Profile

Zain Akbari

Equity Analyst
Zain Akbari, CFA, is an equity analyst for Morningstar Research Services LLC, a wholly owned subsidiary of Morningstar, Inc. He covers food companies, auto parts retailers, and information services firms.Before joining Morningstar in 2015, Akbari spent several years at UBS, most recently leading the firm’s Liability Management, Americas team. During his time at UBS, Akbari structured and executed bond buybacks, exchange offers, and covenant modifications for investment-grade, high-yield, and convertible securities issued by American and Asian companies.Akbari holds a bachelor’s degree in finance and real estate from The Wharton School of The University of Pennsylvania and master’s degree in business administration from the University of Chicago Booth School of Business.