Analyst Calls Target Stock a 'Winner' Amongst Retailers

Citigroup upgraded TGT to "buy" from "neutral"

Deputy Editor
May 7, 2024 at 10:27 AM
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The shares of retail giant Target Corp (NYSE:TGT) are up 2.2% at $161.77 at last glance, following an upgrade from Citigroup to "buy" from "neutral." The firm named TGT as one of the winners in the retail sector after a choppy few years, citing well-controlled inventory, easier sales comparisons, and conservative guidance as well as its new membership program. 

Target stock has been on a downtrend since its April 1, 52-week high of $181.86, though things are picking up today. A broader look shows that the $180 region has rejected all rallies since the equity's May 2022 bear gap, so it will have to conquer that level before making any further progress. There does appear to be emerging support at the 80-day moving average, however. Since the start of the year, TGT is up 13.6%. 

Call traders are eyeing Target stock after the bull note, with 5,215 calls exchanged so far -- double the intraday average volume -- compared to 3,335 puts. The weekly 5/10 162.50-strike call is the most active contract, followed by the 157.50-strike call in the same weekly series. 

When speculating on TGT's next move, options look like a good way to go. Premium is reasonably priced at the moment, per the stock's Schaeffer's Volatility Index (SVI) of 23%, which sits in the low 10th percentile of its annual range. 

 

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