5/21/24 - $tgt - leaning long biased into tmr AM print
5/21/24 - vrockstar -
TGT
- tough setup, unclear if i'll participate on tmr's AM print. on one hand, the trends look incrementally better than
WMT
which surprised (as the retailer has been absorbing even mid-higher end customers), multiple (adjusted for debt) is modestly above 20x PE which is reasonable for this type of scale (staple-ish) retailer, and 4+% fcf yield seems cheap in this neva-stop-wont-stop-print-4-eva-tape.
on the converse, the tgt demo reminds me of
SBUX
+
LULU
+ $ulta... and that freaks me out from the long side given how these stocks have reacted. the counter point to this, however, is
TGT
really is the lower end of all of these customers - so just like
WMT
absorbed some trade down, it wouldn't be unreasonable for
TGT
to benefit in the same vein.
i'm biased long into the print, but might need someone to tip my scales if u have an opinion leave a comment and let's sort this out
TGT
- tough setup, unclear if i'll participate on tmr's AM print. on one hand, the trends look incrementally better than
WMT
which surprised (as the retailer has been absorbing even mid-higher end customers), multiple (adjusted for debt) is modestly above 20x PE which is reasonable for this type of scale (staple-ish) retailer, and 4+% fcf yield seems cheap in this neva-stop-wont-stop-print-4-eva-tape. on the converse, the tgt demo reminds me of
SBUX
+
LULU
+ $ulta... and that freaks me out from the long side given how these stocks have reacted. the counter point to this, however, is
TGT
really is the lower end of all of these customers - so just like
WMT
absorbed some trade down, it wouldn't be unreasonable for
TGT
to benefit in the same vein. i'm biased long into the print, but might need someone to tip my scales if u have an opinion leave a comment and let's sort this out