Are Wall Street Analysts Bullish on Target Stock?
Valued at a market cap of $46.5 billion, Target Corporation (TGT) is one of the largest retail chains in the U.S., operating a wide network of general merchandise stores. Based in Minneapolis, Minnesota, TGT is known for its affordable yet stylish product offerings, Target sells a mix of private-label and national brands across categories like apparel, home goods, electronics, and groceries.
Shares of this discount behemoth have considerably lagged behind the broader market over the past 52 weeks. TGT has declined 21.3% over this time frame, while the broader S&P 500 Index ($SPX) has surged 21.1%. Moreover, on a YTD basis, the stock is down 22%, compared to SPX’s 7.9% rise.
Narrowing the focus, TGT has also underperformed the VanEck Retail ETF’s (RTH) 24.1% rise over the past 52 weeks and 9.6% uptick on a YTD basis.
Target’s stock fell 5.2% following its Q1 earnings release on May 21, as the company reported weaker-than-expected results. Comparable sales declined 3.8% year-over-year, contributing to a 2.8% drop in total net sales to $23.8 billion, below Wall Street forecasts. Additionally, adjusted EPS came in at $1.30, marking a sharp 35.9% year-over-year decline and missing analyst estimates by 19.8%.
For fiscal 2025, ending in January 2026, analysts expect TGT’s EPS to decrease 14.8% year over year to $7.55. The company’s earnings surprise history is mixed. It exceeded the consensus estimates in two of the last four quarters, while missing on two other occasions.
Among the 33 analysts covering the stock, the consensus rating is a “Hold” which is based on eight “Strong Buy,” three “Moderate Buy,” 19 “Hold,” and three “Strong Sell” ratings.
This overall consensus is bearish compared to a month ago, when the stock had a “Moderate Buy” overall rating.
On July 21, Barclays plc (BCS) downgraded Target from “Equal Weight” to “Underweight,” citing concerns over potential sales weakness in key segments like consumables and general merchandise amid economic headwinds. Analyst Seth Sigman emphasized the need for a strategic shift to avoid further decline. Barclays set a bearish price target of $91.
The mean price target of $107.16 represents a 1.7% premium from TGT’s current price levels, while the Street-high price target of $135 suggests an ambitious upside potential of 28.1%.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com