- Loup Ventures founder Gene Munster issues the bold prediction that Amazon (NASDAQ:AMZN) will acquire Target (NYSE:TGT) in 2018. Key snippets from Munster's note on the retail bombshell idea are posted below.
- "Amazon believes the future of retail is a mix of mostly online and some offline. Target is the ideal offline partner for Amazon for two reasons, shared demographic and manageable but comprehensive store count."
- "As for the demographic, Target's focus on mom's is central to Amazon's approach to win wallet share."
- "If Amazon acquires Target’s that would jump its store count to about 2,300. As for anti-trust, the Trump administration won’t do any favors for Jeff Bezos, but the market share numbers suggest the deal will be approved."
- Munster sees a takeout valuation on Target of $41B, about a 15% premium to Target's current price.
- Shares of Target are up 1.73% premarket to $66.38. AMZN +0.46% to $1,174.97.
- Now read: Eric Parnell Positions For 2018: Watch The Dollar
Original article