Schaeffer's Top Stock Picks for '25

Target Eyes Another Day of Record Highs After Bull Notes

Options premiums also look attractive on the equity

Managing Editor
Nov 21, 2019 at 9:18 AM
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Just one day off a blowout earnings report that led to a new record high, Target Corporation (NYSE:TGT) is up 1.3% in electronic trading, continuing its climb higher and set to open at another all-time peak after receiving a fresh round of bull notes. Following last night's close, no fewer than 10 brokerage firms handed out a price-target hike on the security.

The most generous so far has been out of Raymond James and Citigroup, both of which raised their TGT price targets to $150 -- a nearly 19% premium to Wednesday night's close at $126.43. Meanwhile, KeyBanc chimed in, saying Target is well-positioned for the holiday season.

The shares are now set to open at $127.98, shattering yesterday's all-time high of $127.19. The equity is also up 91% year-to-date, and recently enjoyed a bounce off its 50-day moving average -- a new layer of support. In terms of analyst support, 13 covering firms carried a "strong buy" coming into today.

In the wake of earnings, it's a good time to buy options premium on Target stock. This is per the equity's Schaeffer's Volatility Index (SVI) of 23%, which ranks in the 18th percentile of its annual range. In simpler terms, near-term options are pricing in unusually low volatility expectations at the moment.

 
 

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