On Tuesday analysts at Citigroup upgraded Target Corporation (TGT) as the housing recovery should drive sales growth for the discount retailer.
The analysts upgraded TGT from “Neutral” to “Buy” and see shares reaching $72, up from the previous target of $70. The new valuation suggests a 18% upside to Monday’s closing price of $60.85.
Citigroup commented, “We believe that TGT will be a key beneficiary of a housing recovery in 2013, with 180+ bps of SSS growth upside, and is well positioned to gain category market share through its Threshold line. We also see longer term upside from Canada, and are pleased with increased focus on and investment behind e-commerce and mobile.”
Target shares were up $1.20, or +1.97%, during morning trading on Tuesday. The stock is up about +19% over the trailing twelve months.
The Bottom Line
Shares of Target have a dividend yield of 2.32% based on Tuesday’s intraday trading price of $61.95 and the company’s annualized dividend payout of $1.44 per share.
Target Corporation (TGT) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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