Evercore ISI Positive Calls on Target and Best Buy

Investing.com — Evercore ISI has initiated positive tactical calls for Target Corporation (NYSE:TGT) and Best Buy Co Inc (NYSE:BBY) based on favorable holiday shopping trends and spending intentions in key categories.

Target Corporation

Evercore projects an 8-10% upside for Target, estimating a price range between $140 and $145. The forecast is supported by:
– A mid-teen increase in web traffic in December.
– Strong consumer interest in toys and home accessories.
– Lean inventory levels and improved shrink management expected to support margins through 2025.

Despite weaker spending intentions in categories like clothing, Evercore argues that the negative sentiment after Target’s Q3 results is overly pessimistic. A strong Q4 and positive outlook may help lift the stock.

Best Buy Co Inc

For Best Buy, Evercore anticipates a similar 8-10% upside, targeting a price range of $95-$100. Key insights include:
– Improving sales in consumer electronics.
– Strong spending intentions among consumers, particularly in heavy electronics.
– Electronics ranked among the top three spending categories in Evercore’s holiday survey.

However, risks for Best Buy include potential margin pressures due to aggressive promotions and ongoing tariff concerns that could affect investor sentiment.