Arturo Rosenow
Investment Thesis
Target Corporation (NYSE:TGT) is currently under the weight of very negative sentiment. I believe this is a classic cognitive bias, where people are very quick and happy to forget the past. So please let me remind
Target: Something Has To Change
Summary
- Target is currently undervalued, trading at a significant discount to its historical averages and peers, despite solid fundamentals and a strong dividend yield.
- Negative sentiment and strategic uncertainty have weighed on the stock, but past examples like Walmart and McDonald's show recovery potential after similar periods.
- Key catalysts for upside include improvement in operating margins, digital segment growth, and a turnaround in store traffic, supported by ongoing buybacks and dividends.
- I recommend gradually accumulating shares over the next 2–3 quarters, collecting a nearly 5% dividend while awaiting operational improvements and sentiment reversal.
Hi, I'm Martin, I focus on maintaining a delta neutral portfolio. I want to be long/short at the same time and benefit from market volatility. I specialize in using options through which I enter and exit trades. I look for market opportunities primarily in small companies, and my search takes me into the waters of mid-sized companies as well.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of TGT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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