Analysts Hike Price Targets On Target Stock Amid Amazon Rumors

A short squeeze could provide tailwinds for TGT stock

Managing Editor
Jan 3, 2018 at 9:45 AM
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It's shaping up to be a critical year for Target Corporation (NYSE:TGT), as rumors continue to swirl about a possible buyout from Amazon.com (AMZN) later in 2018. Nevertheless, after trending higher for several months and adding 3.6% yesterday alone, the retail stock is surging into the new year.

Today seems no different, with the equity receiving two price-target hikes this morning. Specifically, Deutsche Bank raised its price target to $57 from $53, and Telsey Advisory Group lifted its target price to $65 from $58. Still, TGT shares are down 0.4% this morning at $67.31.

Although Target stock has added over 27% in the last nine months, analysts remain skeptical. Of the 19 brokerages in coverage, 15 rate the shares a "hold" or "strong sell." Furthermore, the equity's average 12-month price target of $61.89 sits lower than its current perch. This suggests the retail stock could be overdue for both upgrades and further price-target hikes.

A short squeeze could also provide more tailwinds for Target stock in 2018. Short interest decreased by 12% during the last two reporting periods to 45.85 million shares, and represents a healthy 8.4% of TGT's total available float. It would take nearly seven days for shorts to fully cover their positions, at the security's average daily trading volume. 

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