Target "outperform," target price reduced - update

10.12.07 - Credit Suisse

NEW YORK, December 10 (newratings.com) - Analysts at Credit Suisse maintain their "outperform" rating on Target Corporation (TGT), while reducing their estimates for the company. The target price has been reduced from $66 to $64.

In a research note published this morning, the analysts mention that the company has reported its November comparable store sales at 1.1%. With Target facing the worst traffic trends in several years, the company has indicated that it is likely to be unable to achieve EPS growth in 4Q, if sales trends do not improve substantially in December. The company is likely to focus on sustaining its traffic through various measures going forward, rather than concentrating on improving its margins, the analysts say. The EPS estimates for 2007 and 2008 have been reduced from $3.44 to $3.39 and from $3.79 to $3.75, respectively.