Target "buy," price objective reduced - update

21.08.07 - A.G. Edwards & Sons

NEW YORK, August 21 (newratings.com) - Analysts at AG Edwards maintain their "buy" rating on Target Corporation (TGT). The 12-18 month price objective has been reduced from $78 to $72.

In a research note published this morning, the analysts mention that the company has posted robust 2Q results, with EPS ahead of the estimates, driven by higher-than-expected operating profits in the credit-card/CC operation. The share prices of retail companies have been under significant and sustained pressure since the beginning of this year and this trends is expected to continue due to a probable decline in same-store sales and resulting earnings pressure, the analysts say.