TGT On-Track For 450 P-Fresh Stores By Q4

Analysts at Citigroup reiterate their "buy" rating on Target Corp TGT. The target price for TGT is set to $72. According to Citigroup, “TGT completed 116 P-Fresh remodels in 2Q10 and 211 remodels in 1H10. In 2Q10, P-Fresh stores contributed +70 bps to the company's total SSS. The company now operates 323 P-Fresh stores and expects to have approx. 450 P-Fresh stores by 4Q10, which will account for over 25% of its store base.” “At the end of 2Q10, TGT's allowance for doubtful accounts stood at $851M, down from $930M at 1Q10-end and its peak of $1,025M at 3Q09-end. Management believes that the allowance could decline further in 2H10, although not at the same rate as in 1H10. We are forecasting a decline in the allowance to $713M by year end,” the analysts mention. Citigroup adds, “In July 2010, TGT issued $1,000M of long-term debt at a coupon rate of 3.875%, maturing in July 2020. The debt was used for general corporate purposes. We are encouraged that TGT was able to take advantage of low long-term interest rates to secure this financing.” More Analyst Ratings here