On Sunday, August 18, we said, “Keep an eye on oversold shares of Target (SYM: TGT). After slipping from about $150 to $135.50, it appears to have caught strong support dating back to late 2023. It’s also oversold on RSI, MACD and Williams’ %R and could push aggressively higher, especially with the back to school season already here.”
On Monday, August 19, TGT opened at $143.38. By August 21, it was up to $167.40. Now back to $158.96, it could still push aggressively higher again thanks to back-to-school shopping. Helping, company earnings were explosive. EPS of $2.57 beat by 39 cents. Revenue of $25.45 billion, up 2.7% year over year, beat by $240 million. Comparable sales were up 2%.
And while firms like Wells Fargo and JPMorgan lowered their price targets ahead of earnings, we were bullish on oversold conditions. Plus, after earnings Roth MKM, TD Cowen, Truist, Stifel, BMO Capital, and UBS raced to raise their price targets.
All of which proves that sometimes, firms are late to the game.
