Target’s Earnings Estimates Cut at UBS (TGT)

By Staff,

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Retail giant Target Corporation ( TGT ) saw its earnings estimates lowered on Thursday by analysts at UBS.

The firm said it cut its estimates for TGT through 2012, noting that gross margins should remain depressed for the remainder of 2010. Still, UBS maintained its "Buy" rating and $67 price target, which represents an expected 29% upside to the stock's Wednesday closing price of $51.95.

Target shares fell 18 cents, or -0.4%, in premarket trading Thursday.

The Bottom Line
We have avoided shares of TGT since our 2008 June coverage began, when the stock was trading at $52.52. The company has a 1.92% dividend yield, based on last night's closing stock price of $51.95. The stock has technical support in the $46-$48 price area. If the shares can firm up, we see overhead resistance around the $54-$55 price levels. We would remain on the sidelines for now.

Target Corporation ( TGT ) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing Stocks
Referenced Stocks: TGT

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