Target "buy," price objective raised

24.05.07 - A.G. Edwards & Sons

NEW YORK, May 24 (newratings.com) - Analysts at AG Edwards maintain their "buy" rating on Target Corporation (TGT), while revising their estimates for the company. The 12-18 month price objective has been raised from $71 to $72.

In a research note published yesterday, the analysts mention that the company has reported its 1Q EPS ahead of expectations. Target posted higher-than-expected gross margins and expense ratio in the quarter. The company?s total inventories grew by only 5.9%, while sales grew by 9%, the analysts say. The EPS estimate for 2Q has been reduced from $0.81 to $0.80. The EPS estimates for this year and next year have been raised from $3.57 to $3.58 and from $4.03 to $4.07, respectively.