Target stock is benefiting from reports Amazon could buy the company
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.