TGT – Markets expectations are for Uniform ROA to improve, but management may have concerns about growth opportunities, margins, and partnerships
October 14, 2021
- Target Corporation (TGT:USA) currently trades below corporate, yet above recent averages relative to Uniform earnings, with a 19.5x Uniform P/E (Fwd V/E’).
- At these levels, markets are pricing in expectations for Uniform ROA to improve, accompanied by 3% Uniform asset growth.
- Meanwhile, analyst expectations for 15% Uniform ROA and 1% Uniform asset growth would imply a stock price of about $209, representing marginal 9% equity downside for the firm.
- Moreover, the firm’s most recent earnings call suggests management may have concerns about growth opportunities, margins, and partnerships.