Target "buy," target price raised

16.07.07 - A.G. Edwards & Sons

NEW YORK, July 16 (newratings.com) - Analysts at AG Edwards maintain their "buy" rating on Target Corporation (TGT). The 12-18-month target price has been raised from $72 to $78.

In a research note published on July 13, the analysts mention that the company has achieved a 12% EPS CAGR over the past four years. Target may exceed the EPS estimates for FY08, given that the company is well positioned to gain market share amid the possibility of weak consumer spending, the analysts say. The upward revision in the target price reflects the assumption of a 20% earnings-based premium to the S&P500 index, AG Edwards adds.