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Target Stores to Close Thanksgiving Day in Policy That May Continue

'What started as a temporary measure driven by the pandemic is now [Target's] new standard,” said CEO Brian Cornell.
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Target  (TGT) - Get Free Report stores will be closed on Thanksgiving Day for the second year in a row, and that policy may continue in coming years, the company said.

Last year Target shuttered on turkey day as a health precaution due to the Covid pandemic. 

“What started as a temporary measure driven by the pandemic is now our new standard,” CEO Brian Cornell said in a statement.

Target stores will open 7 a.m. local time the day after Thanksgiving, it announced earlier this month. Like so many other retailers, Target now offers holiday shopping discounts starting in October instead of waiting until Black Friday.

The stock recently traded at $242.45, down 3%. It has slumped 9% since Tuesday, when it released third-quarter earnings.

But Morningstar analyst Zain Akbari is bullish. 

 “Our $159 per share valuation of no-moat Target should rise by a mid-single-digit percentage, after it announced third-quarter earnings,” he wrote Wednesday.

“The chain saw another quarter of exceptional comparable sales growth (12.7%), handily beating our 7.5% expectation on strong store traffic.

“While the results will push our near-term top-line expectations higher (contributing to the planned valuation increase, along with a time value of money-related adjustment), our long-term forecast is intact (low-single-digit percentage sales growth, 8% adjusted operating margins)."

“Management expects high-single-digit to low-double-digit comparable growth in the fourth quarter, and our prior 6.5% expectation will likely rise to roughly 10%,” Akbari said.

To be sure, “we still suggest investors await a more attractive entry point considering near-term volatility and long-term concerns about retail competition and Target’s level of differentiation,” he said.