Could This Big Box Retailer Be Private Equity's Next Target?

Target (NYSE: TGT) is once again the subject of takeover rumors. Negative sentiment and both company- and macro-specific factors have pushed the discount retailer's stock over 35% year to date. According to analysts at D.A. Davidson, this means that the stock has fallen to such a low price that a leveraged buyout of the company could prove very profitable.This latest report gives further credence to the idea that Target is a viable "target" of private equity, despite its massive size compared to the mid-cap and small-cap companies private equity firms typically acquire.Nevertheless, I wouldn't buy Target solely as a takeover play. Rather, a buy-and-hold strategy may be the best approach. Why? Takeover rumors could continue to come and go, but over an extended time frame, this stock could experience strong gains, if and when investor sentiment shifts back to positive.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool