Michael Hakes - CFA, MBA Target Corp TGT-N TOP PICK Sep 15, 2023

He expects an activist to step in, but they do food and places with scale, like Walmart and Amazon, do it better.

Trades at 10x PE and pays a 4.75% dividend yield. Has fallen and is now cheap historically.

Has been a problem child for a while and not worth the headache; there are better retailers. TGT faces a weaker consumer.

It caters to higher-income consumers than Walmart. She's long-term and patient. 

They report Wednesday. It has been a victim of poor luck and protests. Pays a 4.5% yield. He fears that TGT reports an okay quarter but withholds guidance.

Will hold it, is down 40% the past year. Not happy. The stock is hard to defend. Traffic is down. But she still sees value in the brand. They need to reduce their product from 62% discretionary to 50%. She likes their restructuring.

Well managed, high-quality franchise. Struggled a bit relative to competitors like WMT. Valuation multiple is lower than other retailers, but not downright cheap. Headwinds to US consumer from tariffs on goods, which will impact demand. Be cautious near-term.

Yeesh. No support. Continued succession of lower highs and lower lows. 

Is stuck. Their products are too expensive and there's so much competition from Amazon, TJX and Walmart. Maybe the new CEO is better, but doesn't excite the market.