Target Corporation (TGT) Seems Impervious to Mediocre Results

Page 2 of 2

Furthermore, while the company’s entry into the Canadian market allows it to chase a significant long-term market opportunity, Target is losing money there this year and could lose money there again next year. Moreover, the company has dubiously decided to exclude these losses from its adjusted earnings calculation, which is why GAAP earnings will be even lower than the adjusted EPS range of $4.70 to $4.90. Based on Target’s weak performance year to date and competitive threats, I think Target stock has become somewhat overvalued.

The article Target Stock Seems Impervious to Mediocre Results originally appeared on Fool.com and is written by Adam Levine-Weinberg.

Fool contributor Adam Levine-Weinberg is short shares of Amazon.com. The Motley Fool recommends Amazon.com. The Motley Fool owns shares of Amazon.com.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Page 2 of 2