MKM Partners raised its price target on Target to $77
Since its June bottom below $50, Target Corporation (NYSE:TGT) has mostly traded in a channel of higher highs and lows. More recently, TGT stock has outperformed the S&P 500 Index (SPX) by 11.5 percentage points during the past month, and today the shares are up 0.5% to trade at $62.97. Brokerage firm MKM Partners sees more upside ahead, too, even though the retailer last month gave an ugly holiday forecast. Specifically, the analysts upped their price target to $77 from $66, representing territory unseen since the December 2016 bear gap.
But for Target stock to continue its push higher and reach MKM Partners' price target, it'll have to hurdle a tough region of technical resistance. Just above the equity's current perch is the $63.50 level, which corresponds with a 50% Fibonacci retracement of its 52-week high to its June 52-week low. This area has capped breakout attempts since late October.
If TGT does rally, there's room for more bullish analyst attention. That's because just four of the 19 covering brokerage firms say the security is worth buying, and its average 12-month price target comes in at $59.47 -- below the stock's current price.
It could also help if short sellers begin to cover their positions. These bearish bets have been in decline since hitting their highest point on record in October, including a 7.9% drop in the last two reporting periods. As it stands now, 9.1% of the equity's float is dedicated to short interest, and going by average daily volumes it would take short sellers one week to buy back their shares.