TGT

Target Corp

Consumer


Presented:05/06/2020
Price:$113.58
Cap:$56.77B
Current Price:$160.69
Cap:$74.03B

Presented

Date05/06/2020
Price$113.58
Market Cap$56.77B
Ent Value$68.08B
P/E Ratio17.85x
Book Value$23.47
Div Yield2.31%
Shares O/S499.83M
Ave Daily Vol6,136,342
Short Int3.22%

Current

Price$160.69
Market Cap$74.03B
Target Corp. engages in owning and operating of general merchandise stores. It offers curated general merchandise and food assortments including perishables, dry grocery, dairy, and frozen items at discounted prices. The company was founded by George Draper Dayton in 1902 and is headquartered in Minneapolis, MN.

Publicly traded companies mentioned herein: Amazon.com Inc (AMZN), Costco Wholesale Corp (COST), Target Corp (TGT), Walmart Inc (WMT)

Highlights

The presenter is short shares of Target Corp (TGT), which has seen significant multiple expansion in the last few years. The stock trades at ~$113 per share, up ~50% over the last four years; however, the company’s revenue has grown at just a 1.2% CAGR and EBIT has declined from $5.13B in FY2015 to $4.67B in FY2019 (FY2019 ended February 1, 2020). Bullish investors view TGT as a COVID-19 beneficiary, but the presenter’s bearish view sees the pandemic as accelerating margin headwinds driven by mix shifts, coupled with the unwinding of recent over-earning, which was already a concern. 

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Idea Discussion

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