Target "buy," target price raised

07.12.06 - Banc of America

NEW YORK, December 7 (newratings.com) - Analyst David Strasser of Banc of America Securities maintains his "buy" rating on Target Corp (TGT), while raising his estimates for the company. The target price has been raised from $64 to $65.

In a research note published yesterday, the analyst mentions that a solution for weaker trends in home and in women?s core contemporary/accessories has been identified, which is expected to result in a turn next year. Target has indicated that its margins may be flat to slightly down in 2007, but the home division may lend upside. The comp estimate for 2007 has been raised by 50 bps to 4.5%. The EPS estimate for 2007 has been raised from $3.55 to $3.60.