Target "buy," target price reduced

21.11.07 - Lazard Capital Markets

NEW YORK, November 21 (newratings.com) - Analysts at Lazard Capital maintain their "buy" rating on Target Corp (TGT), while reducing their estimates for the company. The target price has been reduced from $70 to $67.

In a research note published this morning, the analysts mention that the company has reported its 3Q EPS and gross margins short of the estimates primarily due to an adverse shift in the product mix. The analysts expect Target?s share price to appreciate from 1Q08 onwards, with investors gaining confidence in the company?s ability to execute, gain market share and meet the reduced guidance. The EPS estimates for FY07 and FY08 have been reduced from $3.55 to $3.42 and from $4.10 to $3.95, respectively.