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Target Corporation: Financial & Price Forecasts, DCF Valuation, ESG & Other Risks (03/22)
Target Corporation has grown well over the past couple of years, meeting the explosive consumer demand that materialized during the pandemic. Its digital strategy has also materialized well and around 19% of Target’s total sales are from digital avenues. It delivered a strong 2021 and the full-year comparable sales of the company were up a remarkable 12.7%. The management was able to pass on the impact of the inflation and mitigate supply chain issues and its earnings per share grew by a staggering 44% compared to the previous year. With the addition of Ulta Beauty in the stores, the sales of every square food have become strong, and the engagement of guests is impressive. Target is seen to accelerate its capabilities in personalization, inspiring guest appearance, creating an always-on, driving unparalleled value to its partners with a fast-evolving revenue stream for its business through Roundel. There is an increase in multi-category assortment, and incredible progress is seen in categories such as beverage and food. Overall, we give the stock a ‘Hold’ rating with a revised target price. Baptista Research looks to evaluate the different factors that could influence the company's price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology. In this report, we have carried out a fundamental analysis of the historical financial statements of the company. We also have a dedicated analysis of the company's Environmental, Social, and Governance (ESG) risk scores in order to evaluate the sustainability risk. We have added reasonable forecasts of the annualized income statement and cash flows and carried out a DCF valuation of the company using its Weighted Average Cost of Capital (WACC) to determine a forecasted share price.
LIBERUM: Topps Tiles* - Strong FY22 beat and an encouraging start to FY23E
Companies: Topps Tiles Plc