Business & Investment

Target traffic growth has outpaced Costco, a good sign that a new semester and vacations are still coming

Target Corporation has recorded an average traffic increase of 4.8% over the last 13 quarters. This is just one of the reasons retailers have upgraded to buy from Neutral on UBS.

UBS raises target price target
target,
+ 1.82%

From $ 210 to $ 265.

Traffic growth is faster than Costco Wholesale Corporation.
cost,
-0.18%
,
According to analysts, the average growth rate is 4.5%. Target traffic growth is at Home Depot Inc.
HD,
+ 0.30%

(+ 4.9%) and Lowe’s Cos.
Low,
+ 0.60%

(Up 4.8%). Growth rates reflect “how relevant”. [Target] Has become with consumers, “says analysts.

UBS believes that targets will continue to increase traffic due to factors including fulfillment options such as drive-ups that are popular with shoppers. Over $ 1 billion in earnings were reported in the first quarter, and equity earnings continue. Then, after COVID, I returned to work and activities such as parties.

“By driving traffic, Target can create a virtuous circle, attract more attractive products (Levi’s, limited-time designs, etc.) and make more investments in the business,” said UBS, led by Michael Lasser. The analyst writes. ..

to see: Target revenue breaks past estimates as sales of own brand reach record highs

UBS also emphasizes the recovery of clothing and beauty, which account for 20% and 5% of sales, respectively.

In a recent retail note, JP Morgan targeted a recovery in spending in these two categories. New semesters, the holiday season, and a decline in apparel competitors should also benefit retailers. ..

“More broadly, Target estimates that apparel share will increase by 130 basis points in 2020, while Costco and Wal-Mart will increase by 20 and 180 basis points,” wrote JP Morgan.

JP Morgan predicts that the apparel market will grow 21% year-on-year in 2021.

In another note, JP Morgan called Target one of his favorite names: “Target is a hybrid 2021 story that provides insulation from the fate of big caps, the tough COVID-19 rap of others. JP Morgan is Overweight the target stock.

Analysts also note that Target acquired 12 million new multi-channel customers in 2020.

Target announced a Deal Days shopping event last week. This event, which runs from June 20th to June 22nd, overlaps with the Amazon.com Inc. event.
AMZN,
+ 2.07%

A prime day event held on June 21st and June 22nd every year.

Also: Official: Amazon Prime Day is June 21-22 worldwide

And: Use Amazon, Billie Eilish, HER and Kid Cudi to sell Prime Day events

Wal-Mart is no exception.
WMT,
-0.76%

Wal-Mart announced plans to close its US stores last week at Thanksgiving this year.

Target stock prices rose 1.8% on Tuesday and rose 33.2% year-to-date.

S & P 500 Index
SPX,
+ 0.02%

So far, it has increased by 12.5% ​​in 2021.

Target traffic growth has outpaced Costco, a good sign that a new semester and vacations are still coming

http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-748E-3810AF6BA448%7D&siteid=rss&rss=1 Target traffic growth has outpaced Costco, a good sign that a new semester and vacations are still coming

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