We last wrote about Target (TGT) in May, citing considerable upside potential – since then shares have run up over 30%. Our thesis was primarily built on an unjustified discount being applied by the market due to temporary margin headwinds. We continue to believe that Target is a quality brick-and-mortar retailer and although valuation has run up in the past several months, we believe this is also justified given their recent Q2 results.

You can get 10% off a Target gift card this Sunday | News Headlines | kmov.com

Source

We reiterate our buy rating on Target, and continue to believe long-term performance will remain fairly stable warranting a premium in the current environment. Recent quarterly results reinforce this.

Retail Performance is Widespread

Target operates as a brick-and-mortar retailer selling a wide variety of merchandise. Other companies selling general merchandise include superstores like Walmart (WMT) and Costco (COST). Retail has experienced heavy impacts as COVID-19 swept the country – many department stores were forced into bankruptcy while grocery stores saw temporary tailwinds. Going forward, we believe the industry’s performance will be category-dependent.

Source: PlacerAI

Declining foot traffic continues to be the case at department stores, and we don’t expect that to change all that much. On the other hand, there has been fairly stable – if not positive – year-on-year performance at specialty retailers in the home improvement and grocery space. Placer.ai presents an interesting picture of retail performance throughout the pandemic, by category.

Adding on to the stable brick-and-mortar business, Target is also benefiting from efforts on the e-commerce front. With initiative like Buy Online, Pick-up in Store (BOPIS) and delivery through platforms like Shipt, they are able to service demand more efficiently than before. We believe this will be critical going forward and can help Target maintain their position, or even ramp up share.

Target Continues to Perform

Quarterly revenues have been growing in

SINGAPORE, Sept. 28, 2020 /PRNewswire/ – Active crypto prediction marketplace HedgeTrade launches decentralized exchange and DeFi token for liquidity providers and yield farming earning opportunities.

Steaks Finance by HedgeTrade (CNW Group/HedgeTrade)
Steaks Finance by HedgeTrade (CNW Group/HedgeTrade)

HedgeTrade is pleased to announce a closed-loop DeFi initiative to add new ways to earn tokens in conjunction with its leading crypto social trading platform. 

“Steaks Finance is the realization of everything about DeFi done right — no pre-mine, no investors, and no advisory tokens. Like other DeFi platforms, Steaks is designed to exist in perpetuity on its own, but by integrating with HedgeTrade, we create a closed-loop ecosystem and create a practical application for STEAK tokens,” David Waslen, CEO & Co-Founder of HedgeTrade and Steaks Finance said. “By layering in DeFi models, we will be creating a community-driven ecosystem where you can farm, stake, use, trade, govern, and earn STEAK and HEDG tokens.”

Steaks Finance addresses the need for proper long-term use cases for DeFi tokens — allowing users to do more than provide liquidity and earn a portion of the swap trading fees. With Steaks, users can yield farm STEAK tokens and will eventually yield HedgeTrade commissions as well as vote on how the protocol evolves. Combining these models will make this an unprecedented all-in-one ecosystem.

“With Steaks, HedgeTrade is answering the gaps left by other DeFi initiatives — allowing you to earn beyond farming and trading fees which is by integrating with an already viable platform that allows you to earn both STEAK and HEDG tokens in multiple ways,” Waslen said.

Steaks will distribute future fees from various HedgeTrade business lines into the Steaks platform. For example, commissions generated on HedgeTrade will be distributed to STEAK holders via the Steaks “SteakBar” pool. In that way, the STEAK yield farming will not end, even