Latest news with #Ohmes
CNBC
23-05-2025
- Business
- CNBC
Bank of America raises this dollar store's price target ahead of earnings
Bank of America sees room for Dollar General to run as earnings near. Analyst Robert Ohmes lifted his price target by $15 to $115, suggesting shares can jump 14.3% above Thursday's close. That marks a new high for price targets on the discount retailer among analysts on Wall Street, according to LSEG. "With the stock at a discount to historical levels & peers, we believe competitive & expense risks are fully reflected in the stock price," Ohmes wrote to clients in a note. "Increasing visibility on strategic initiatives and share gains from competitor store closures provide a favorable setup for comp & profitability improvement into 2025, particularly in 2H." Ohmes also reiterated his buy rating. That makes him an outlier on the Street, with the majority of analysts surveyed by LSEG have a hold rating. He sees $1.40 in adjusted earnings per share and 1% growth in comparable store sales. Ohmes also said the bank has observed accelerating sales data in the first quarter despite flat estimates — which points to potential for upside. Dollar General is expected to report earnings on June 3. Additionally, the analyst said he has confidence that the Tennessee-based company's "back to basics" strategy is working. While he said bears may point to Walmart's outperformance, Ohmes said Dollar General's price gaps compared with competitors and expanding digital presence can provide tailwinds. Store closures from competitors can also give the company an edge, he said. The stock has rallied more than 32% this year, on track for its first positive year in three.
Yahoo
22-05-2025
- Business
- Yahoo
Target Under Pressure From Tariffs, Rising Competitive Gaps: Analysts
Target Corporation (NYSE:TGT) shares are trading higher on Thursday. On Wednesday, Target registered first-quarter sales of $23.85 billion (down 2.8% year over year), which missed the Street view of $24.32 billion. The retail giant lowered its FY2025 adjusted EPS guidance from $8.80–$9.80 to $7.00–$9.00. Following the results, analysts have made several adjustments to their ratings and price forecasts for the stock. Here are the key analysts' takes on the stock: BofA Securities analyst Robert F. Ohmes downgraded Target from Buy to Neutral, lowering the price forecast from $145 to $105. Telsey Advisory Group analyst Joseph Feldman downgraded the stock from Outperform to Market Perform, decreasing the price forecast from $130 to $110. JP Morgan analyst Christopher Horvers reiterated the Neutral rating on the company, raising the price forecast from $105 to $ Securities: Ohmes notes that while Target is experiencing overall softness in comparable sales, the company continues to perform well in areas like digital channels, seasonal categories, and brand partnerships, including the recent Kate Spade launch. The analyst writes that merchandising efforts could help strengthen Target's appeal and value perception over time. However, the stock is now notably lagging behind peers such as Walmart Inc. (NYSE:WMT). Ohmes has lowered the FY26 adjusted EPS estimate to $6.95 from $9.10. For the second quarter, the analyst projects EPS of $1.50 and a 2% decline in comps. Ongoing margin pressures are likely, and he flags increased uncertainty due to persistent top-line weakness, pressure from tariffs, and a delayed comp recovery. Softer sales are also expected to lead to more markdowns, which would further weigh on margins. Over the long term, Ohmes believes expansion in high-margin segments like marketplace and digital advertising could help improve margin stability. Telsey Advisory Group: Feldman observes that competitors like Walmart are gaining ground in several of Target's key product areas, holding or increasing share in 15 of 35 categories in Q1 FY25, particularly by appealing to higher-income shoppers through broader assortments, better pricing, and greater convenience. The analyst also expressed a cautious stance on the newly formed Enterprise Acceleration Office. As a result, he has reduced his 2025 EPS estimate to $7.71 from $8.80 and now expects comparable sales to decline 2.5%, versus a previous estimate of a 0.3% drop. The revision in rating reflects the continued challenging macro environment, inconsistent operating execution, limited visibility on the progress of initiatives, and potential risks related to tariffs, the analyst noted. JP Morgan: Per Horvers, Target continues to hold relevance as a retailer over the long term but emphasizes that a more supportive macroeconomic environment is needed to drive stronger goods demand, similar to the backdrop in Q4 FY24 when Target's market share losses were at their lowest in over two years. The current backdrop is complicated by tariffs (which could accelerate share to value players like Costco Wholesale Corporation (NASDAQ: COST), Walmart Inc., and Inc. (NASDAQ:AMZN)), the analyst notes. Target has reiterated its tariff strategy, which includes negotiating with vendors, re-evaluating assortment, diversifying countries of production, adjusting ordering timing, and taking price as a last resort. The analyst also points out that management reported 36% year-over-year growth in same-day delivery, driven by the Target Circle 360 program. The service now includes no markups for hundreds of partner retailers, which Horvers views as an effort to grow subscription revenue and better compete with offerings like Amazon Prime, Walmart+, and Instacart. Price Action: TGT shares are trading higher by 2.31% to $95.22 at last check Thursday. Read Next:Image by bluestork via Shutterstock Date Firm Action From To Mar 2022 Raymond James Maintains Strong Buy Mar 2022 JP Morgan Maintains Overweight Mar 2022 Deutsche Bank Maintains Buy View More Analyst Ratings for TGT View the Latest Analyst Ratings Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? TARGET (TGT): Free Stock Analysis Report This article Target Under Pressure From Tariffs, Rising Competitive Gaps: Analysts originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
08-05-2025
- Business
- CNBC
Bank of America double upgrades this little-known eye care stock poised to pop 40%
National Vision is looking to a strong second half of the year, according to Bank of America. Analyst Robert Ohmes double upgraded shares to buy from underperform on Wednesday, citing "multiple signs" that the eyewear company's strategic initiatives improving results. Ohmes' new price target of $22 per share, up from $13, implies the stock might soar 41% compared to Wednesday's close. National VIsion benefited from better pricing and employee recruitment in its latest quarter, according to Ohmes. Customer traffic turned positive last quarter and appears to be continuing. Among the catalysts: "New advertising, a widening selection of $99+ eyeglass frames (including Ted Baker, GX by Gwen Stefani and a Ray Ban pilot) and the rollout of a new [customer relations management software] system that will support improved marketing," Ohmes wrote in the 7-page report. Moreover, the company is "well positioned" to withstand the effect of higher tariffs, the analyst said. National Vision guided toward a headwind of $10 million to $15 million in additional product costs for 2025. Wall Street analysts estimate National Vision's 2025 revenue will total $1.93 billion, FactSet says. "Importantly, less than 10% of EYE's [cost of goods sold] is exposed to China and pricing actions that began in 4Q have supported increased ticket without degradation in conversion or net promoter scores, implying room to mitigate tariffs," Ohmes said. —CNBC's Michael Bloom contributed to this report.
