Why Target Is an Analyst's 'Top Pick' After Its Stock Plunged

Core Insights - Oppenheimer analysts have designated Target as a "top pick" despite a significant drop in its stock following disappointing earnings [1][2] - The analysts believe Target's stock is "at/near a bottom" and has potential for long-term growth [1][3] Financial Performance - Target's stock fell approximately 20% after quarterly results that missed expectations and included a reduced full-year forecast [3] - Oppenheimer set a "buy" rating with a price target of $165, representing about a 30% premium to the stock's closing price prior to the report [3] - Following the announcement, Target's stock rose over 4% to above $130, although it remains down about 8% year-to-date [3] Digital Sales and Future Outlook - Comparable digital sales increased by 10.8% year-over-year, contrasting with a 1.9% decline in comparable store sales [4] - Oppenheimer suggests that Target is well-positioned for future growth through digital initiatives, store investments, exclusive brand merchandising, competitor liquidations, and partnerships [4] - The retailer has acknowledged that higher prices have deterred some customers and has introduced a schedule of daily and weekly sales through the holiday season [5]