Target "buy," target price raised

17.05.06 - Deutsche Securities

NEW YORK, May 17 (newratings.com) - Analyst William A Dreher Jr of Deutsche Bank Securities maintains his "buy" rating on Target Corp (TGT), while reducing his estimates for the company. The target price has been raised from $60 to $68.

In a research note published yesterday, the analyst mentions that the company has posted its 1Q06 EPS short of the estimates and the consensus. Target's quarterly results were driven by continued robust performance of the credit card business, the analyst adds. The company has reaffirmed its guidance for mid-teens EPS growth during FY06. The EPS estimates for FY06 and FY07 have been reduced from $3.12 to $3.11 and from $3.57 to $3.56, respectively.