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Fly News Breaks for January 15, 2020
COST, WMT, TGT
Jan 15, 2020 | 10:58 EDT
After Target (TGT) reported November/December comparable store sales growth of 1.4% and lowered its Q4 sales guidance, Stifel analyst Mark Astrachan said he views the result as disappointing, especially given that Target has beaten comp expectations in recent quarters. The analyst, who noted that the company blamed the comp miss on softer than expected sales in holiday categories such as electronics, toys, and parts of its home assortment, believes there is limited read-through for broadline retailers Walmart (WMT) and Costco (COST), which get insulation from their grocery sales. He also noted that Costco has already reported a strong November/December comp increase of 6.6%, which he reads as a sign of strong share gains in light of Target's report. Astrachan, who expects Target shares to underperform following the report, has a Hold rating and $130 price target on the stock.