Target Corporation Cuts Guidance Again
<p><a href='https://financialmodelingprep.com/financial-summary/TGT'>Target Corporation (NYSE:TGT)</a> cut its Q2 guidance for the second time in three weeks. According to the announcement, the company will implement a set of actions to right-size its inventory for the balance of the year and manage both rising costs as well as supply chain disruption. </p>
<p>The company cut operating margin guidance for Q2, which implies full 2022 will end up in the ballpark of approximately 5.0% (vs. prior guidance of approximately 6.0%). </p>
<p>While this news is painful to digest, analysts at RBC Capital are hopeful that this is a rip the band aid off type event that will allow the company to operate more efficiently in H2 and beyond. </p>
<p>The analysts expect investors to tread with caution near-term, but believe this decision ultimately makes the name more investable. The analysts trimmed their 2022/2023 EPS estimates to $8.72/$12.84 from $10.57/$13.27, which resulted in their price target moving to $231 $239. Their Outperform rating was reiterated.</p>

NYSE:TGT