Time to "Target" Back-to-School Stocks
Analyst Oliver Chen says to buy Target and Ulta Beauty.
Aug 04,2020,20:44

Back-to-school (BTS shopping) will look different this year but it will benefit retailers including Target Co. (NYSE: CO) and Ulta Beauty, Inc., (Nasdaq: ULTA) says Cowen & Co. analyst Oliver Chen.

As some states make efforts to come up with school reopening plans, Chen writes shopping will be down as a whole with apparel retailers not likely hit the boom they are accustomed to around the fall, as cited by Barrons. 

Meanwhile, he thinks at least some money that would have been used on apparel will be reallocated to beauty—and that’s where Ulta comes in. Citing Ulta’s strong e-commerce sales amid the coronavirus crisis and praise for off-mall locations, he has an outperform rating and a $280 per share target. As of intraday, the stock was trading nearly 3% higher at $196.41 per share. 

For Target, Chen has a target of his own of $150 per share on the firm with an outperform rating. While Target is a seller of clothing, he points to its categories offerings including home décor, food, and essentials that will help them benefit. 

“We acknowledge some weakness in the back-to-school portion of Home, but believe shoppers nesting at home will be a key category driver over the coming quarters,” he said.

As of midday, the stock in Target rose nearly 2% to 130.19 per share. 






Topics :Time to "Target" Back-to-School Stocks
Read More
prev: The Slow S&P 500 Grind Higher Is Still On


California:2905 Stender Way #36,Santa Clara, CA 95054

New York:200 Vesey St Fl 24 New York, NY 10281