We came across a bullish thesis on Target Corporation on LongYield’s Substack. In this article, we will summarize the bulls’ thesis on TGT. Target Corporation's share was trading at $90.62 as of November 28th. TGT’s trailing and forward P/E were 10.98 and 11.48 respectively according to Yahoo Finance. store fikri-rasyid-ezeC8-clZSs-unsplash Target Corporation operates as a general merchandise retailer in the United States. TGT is at a critical inflection point as it navigates a challenging consumer envi ...

Core Insights - Target Corporation is focusing on its third-party digital marketplace, Target Plus, aiming to grow its gross merchandise volume (GMV) to $5 billion by 2030 despite facing challenges with soft sales and changing consumer behavior [1][8] - The company reported a significant growth of over 20% in GMV for Target Plus in the last quarter, adding hundreds of new partners, which has positively impacted online traffic and conversion rates [2][8] - Target Plus is a crucial part of Target's digital transformation strategy, designed to enhance customer engagement, increase market share, and expand product assortment without the inventory risks associated with traditional retail [3][4] Financial Performance - Target's stock has decreased by 22.9% year-to-date, contrasting with the industry's growth of 2.1%, and has underperformed compared to peers like Dollar General and Costco [5] - The forward 12-month price-to-earnings (P/E) ratio for Target is 13.28, significantly lower than the industry average of 31.65, indicating a discount compared to Dollar General and Costco [6] - The Zacks Consensus Estimate indicates a year-over-year decline in sales and earnings per share of 1.8% and 14.8%, respectively, for the current financial year [9]