Target "buy," target price reduced

26.09.07 - Lazard Capital Markets

NEW YORK, September 26 (newratings.com) - Analysts at Lazard Capital maintain their "buy" rating on Target (TGT), while reducing their estimates for the company. The target price has been reduced from $71 to $70.

In a research note published yesterday, the analysts mention that the company has posted its comps for the latest three weeks significantly short of the guidance of 4%-6%. Target?s September sales are being affected by a slowdown in Florida and the Northeast, the analysts say. Target has accelerated its buyback and has initiated recapitalization, which are likely to provide upside to the valuation assumptions for the company?s stock, Lazard Capital adds. The EPS estimates for 2007 and 2008 have been reduced from $3.65 to $3.63 and from $4.18 to $4.13, respectively.