Equity research in the retail sector: the case of target-s comeback

Abstract

This work project analyzes Target’s business within the retail industry. This report will start by focusing on the company and retail industry, analyzing its current form. A further analysis will then be conducted, applying the previous research to provide a fair valuation for the company, resulting in a supported recommendation. Considering the atypical times and a considerable demand for essential goods and other types of items, it is estimated a reasonable sales growth of approximately 3%. The valuation for Target yields a price per share of $281,56 for 2022, which results in a 22,35% Total shareholder return and hence, a BUY recommendation.