Target is Goldman Sachs’ “best long idea” in the retail space for 2024, as the firm expects a deflationary environment to improve discretionary sales. According to analysts led by Kate McShane, several catalysts can boost Target in the next 12 months: Goldman’s constructive outlook on the health of the consumer based on continued labor market strength, which could normalize the demand for services and goods. The firm’s view that fiscal 2024 could be a “year of sales inflection” for several retailers, including Target. A more favorable sales backdrop, with a lean inventory environment, improved supply chain and advancements in tech that could drive promotion personalization to drive margin growth. A more attractive valuation setup compared to last year for Target. The big-box retailer’s shares have struggled this year, down nearly 9% in 2023. Although Target recently beat third-quarter earnings estimates, its comparable sales showed a decline for the second straight quarter. Compared to its rivals, Target is known more for its clothing, beauty and home goods. It’s still trying to boost the quality of its grocery offerings. Goldman, however, is bullish on the stock’s future, seeing nearly 30% upside from Tuesday’s close. “We see long-term growth for TGT tied to 1) market share gains across categories from various mall-based retailers on strong merchandising and 2) a recovery to 6%+ operating m …
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[mwai_chat context=”Let’s have a discussion about this article:nnTarget is Goldman Sachs’ “best long idea” in the retail space for 2024, as the firm expects a deflationary environment to improve discretionary sales. According to analysts led by Kate McShane, several catalysts can boost Target in the next 12 months: Goldman’s constructive outlook on the health of the consumer based on continued labor market strength, which could normalize the demand for services and goods. The firm’s view that fiscal 2024 could be a “year of sales inflection” for several retailers, including Target. A more favorable sales backdrop, with a lean inventory environment, improved supply chain and advancements in tech that could drive promotion personalization to drive margin growth. A more attractive valuation setup compared to last year for Target. The big-box retailer’s shares have struggled this year, down nearly 9% in 2023. Although Target recently beat third-quarter earnings estimates, its comparable sales showed a decline for the second straight quarter. Compared to its rivals, Target is known more for its clothing, beauty and home goods. It’s still trying to boost the quality of its grocery offerings. Goldman, however, is bullish on the stock’s future, seeing nearly 30% upside from Tuesday’s close. “We see long-term growth for TGT tied to 1) market share gains across categories from various mall-based retailers on strong merchandising and 2) a recovery to 6%+ operating m …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]
