The retail name recently posted disappointing earnings results
Target Corp (NYSE:TGT) stock is 1.6% higher before the bell, on track to open at $126.99 after being named a “top pick” at Oppenheimer. In its bull note, the analyst praised the retailers improved risk-to-reward profile and called TGT’s dividend yield “attractive.”
Target stock boasts an intriguing entry point, considering its 12.2% year-to-date deficit. The equity’s losses began to pile up last week, after the firm recorded its largest earnings miss in two years and slashed its full-year guidance. In fact, shares shed 17.8% last week for their fifth weekly loss in six, and now sit at their lowest level since November 2023.
Given its lackluster technical setup, it should come as no surprise that 15 of 33 covering brokerages rate the stock a “hold” or worse. However, positive price action could force these analysts to change their tune, which in turn could provide tailwinds for the struggling retail name.
For those looking to speculate, premium is affordable at the moment. This is per Target stock’s Schaeffer’s Volatility Index (SVI) reading of 24%, which sits higher than 14% of reading from the last 12 months. This implies that options traders are pricing in relatively low volatility expectations.