Analyst: Target's Shipt Could Be Worth $14 Billion
Venturing into hypothetical territory -- but with the idea of understanding some of the factors behind discount retailer Target, Inc.'s (NYSE: TGT) valuation -- investment bank and wealth management firm UBS provided some insight today into the worth of Target's Shipt delivery service. According to UBS's analysis, which uses the recent IPO of DoorDash, Inc. (NYSE: DASH) as a benchmark, Shipt might be worth $14 billion as a stand-alone IPO.
The share price of Target nosed downward this week following its latest holiday sales report despite the retailer posting a 17.2% year-over-year comparable sales jump in November and December. Causes of the decline could be slowing sales growth compared to the third quarter (Q3) and the possibility of this growth tailing off moving deeper into 2021.
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Source Fool.com
