Holiday-Quarter Beat-and-Raise Gives Target Stock a Lift

TGT is headed toward its fourth-straight daily pop

Digital Content Manager
Mar 1, 2022 at 9:32 AM
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Target Corporation (NYSE:TGT) stock is soaring in premarket trading as investors celebrate the big box retailer's fourth-quarter earnings beat. Though revenue fell just short of expectations, the company noted 9% sales growth and said that it expects sales to keep rising, projecting 2022 revenue and earnings growth that topped analysts' forecasts. Target stock was last seen up 13.9% at $227.62.

Should these gains hold, TGT could be headed for its highest close since early January. The stock is also set to topple several key trendlines, including its 30-day moving average, which has put pressure on the stock since November. Target stock is just three sessions removed from its annual low of $184, but is now eyeing its fourth-consecutive daily win. 

While analysts have yet to chime in, MKM Partners issued a bull note just ahead of the event, lifting its price target to $250 from $248. The stock's 12-month consensus price target of $273.55 is a 20% premium to last night's close. The majority of analysts in coverage were bullish coming into today, though some remain hesitant. Of the 19 in coverage, 15 say "buy" or better, while four say "hold."

Meanwhile, options traders have held fast on their bearish stances. The stock sports a 10-day put.call volume ratio of 1.10 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than 94% of readings from the past year. In other words, there's been an unusually healthy appetite for long puts of late. 

 

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