Target's equity research: further from stagnation

• Autor(a) principal: Dias, Rodrigo Alexandre Asseiro
• Data de Publicação: 2021
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10362/140604
• topic: Valuation; Growth; E-commerce; Retail; Target; Comeback; Domínio/Área Científica::Ciências Sociais::Economia e Gestão

This work project conducted a valuation of Target Corporation, an American retail company. The report starts by analysing the macroeconomic context and main drivers that will influence the industry, such as, the COVID-19 pandemic, inflation and the E-commerce’s growth. Thereafter, an industry overview was conducted by comparing Target with the selected peers and then a DCF model to assess TGT’s intrinsic value. The outcome is a recommendation to buy the stock, given the actual share price of $235,28. Target’s share price is expected to amount to $281,56 as of December 2022, providing a return to the shareholders of 22,35%, taking into account the expected dividends per share of $6,30.