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Target About to Break Out: Josh Brown

Target is known for competitive prices but trader Josh Brown says the stock is pretty cheap too.

First he likes the fundamentals and the way management runs the business.

“Target has beaten earnings expectations for 12 consecutive quarters,” he says.

"Also they just completed a $5 billion buyback and at the shareholders meeting this week I think we could see more buybacks or a dividend hike.”

According to Brown, the company’s stated intention is to go to $3 in dividends by 2017 – right now it’s around $1.20.

However, there’s another catalyst – a technical tell that Brown is really excited about.

He thinks the stock is about to break out and likes the risk reward

“I think $55 is major support and I don’t think a run to $70 is out of the question,” he says. "Right here is perfect."

Posted by CNBC's Lee Brodie





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Trader disclosure: On June 12, 2012 , the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Keith McCullough is long NFLX; Steve Grasso is long ASTM; Steve Grasso is long BA; Steve Grasso is long D; Steve Grasso is long FRO; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long MO; Steve Grasso is long PFE; Steve Grasso is long S; Steve Grasso is long VLO; Steve Grasso is long XLU; Tim Seymour is long INTC; Tim Seymour is long AAPL; Tim Seymour is long BAC; Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long JPM; Karen Finerman is long NFLX puts; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long RIMM calls; Karen Finerman is short SPY; Karen Finerman is short MDX; Josh Brown is long AAPL; Josh Brown is long GDX; Josh Brown is long GLD; Josh Brown is long XLU; Josh Brown is long JPM; Josh Brown is long WMT; Josh Brown is long TGT; Josh Brown is long COP; Scott Nations is long JPM; Scott Nations is long BAC; Scott Nations is long C; Scott Nations is long SPY

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