Target (NYSE:TGT) Downgraded by Zacks Research to Hold

Target (NYSE:TGT) was downgraded by analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a note issued to investors on Wednesday,Zacks.com reports.

TGT has been the topic of a number of other research reports. Evercore set a $170.00 target price on shares of Target in a research note on Thursday. Freedom Capital downgraded Target from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, May 20th. Robert W. Baird set a $170.00 price objective on Target in a report on Thursday. UBS Group upped their price objective on Target from $166.00 to $185.00 and gave the company a “buy” rating in a research note on Thursday. Finally, Morgan Stanley reaffirmed an “overweight” rating on shares of Target in a report on Thursday. Eleven investment analysts have rated the stock with a Buy rating, eighteen have given a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $159.52.

Target Stock Performance

Target stock opened at $158.04 on Wednesday. Target has a 52 week low of $83.44 and a 52 week high of $161.98. The company has a current ratio of 0.99, a quick ratio of 0.30 and a debt-to-equity ratio of 0.80. The stock has a market cap of $71.78 billion, a P/E ratio of 16.41, a price-to-earnings-growth ratio of 2.09 and a beta of 0.97. The stock has a 50 day moving average of $140.21 and a 200-day moving average of $127.75.

Target (NYSE:TGT) last issued its quarterly earnings results on Wednesday, August 19th. The retailer reported $4.11 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.35 by $1.76. The business had revenue of $26.54 billion during the quarter, compared to analyst estimates of $26.13 billion. Target had a net margin of 4.08% and a return on equity of 23.23%. The business’s revenue was up 5.3% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $2.05 earnings per share. Target has set its FY 2026 guidance at 9.900-10.900 EPS. On average, analysts expect that Target will post 10.4 EPS for the current fiscal year.

Insiders Place Their Bets

In other Target news, insider Cara A. Sylvester sold 10,000 shares of the firm’s stock in a transaction dated Friday, May 29th. The shares were sold at an average price of $125.89, for a total value of $1,258,900.00. Following the transaction, the insider owned 45,930 shares of the company’s stock, valued at $5,782,127.70. This trade represents a 17.88% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. 0.13% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Target

Institutional investors have recently made changes to their positions in the stock. WFA of San Diego LLC bought a new stake in shares of Target in the 2nd quarter worth approximately $25,000. Jessup Wealth Management Inc bought a new position in Target during the 4th quarter worth $25,000. Richardson Financial Services Inc. bought a new position in Target during the 2nd quarter worth $26,000. Kimelman & Baird LLC bought a new position in Target during the 2nd quarter worth $26,000. Finally, Altshuler Shaham Ltd acquired a new stake in Target in the fourth quarter worth $26,000. 79.73% of the stock is owned by institutional investors.

Target News Summary

Here are the key news stories impacting Target this week:

• Positive Sentiment: Q2 earnings and sales beat expectations. Target reported $26.54 billion in revenue, up 5.3% year over year and above the $26.13 billion consensus estimate. Reported EPS was $4.11 versus expectations of $2.35, while adjusted EPS was reported by some analysts at $2.46 versus a $2.30 estimate. Target Q2 earnings report
• Positive Sentiment: Consumer engagement improved. Guest traffic increased 3.6%, comparable sales rose 3.8%, and digital activity—including traffic from artificial-intelligence platforms—helped support stronger sales. Management also cited merchandising resets and improved execution as evidence that its turnaround is gaining traction. Target traffic and sales article
• Positive Sentiment: Target raised its fiscal 2026 guidance. The company increased its sales and earnings outlook, with current guidance calling for EPS of $9.90 to $10.90. Several analysts followed with higher price targets: RBC raised its target to $178 and maintained an outperform rating, while Citigroup and TD Cowen lifted targets to $160 but retained neutral or hold ratings.
• Neutral Sentiment: Analyst opinion remains mixed. The higher targets indicate improving confidence in the turnaround, but neutral, hold and sector-weight ratings suggest Wall Street believes much of the recovery may already be reflected in the shares.
• Negative Sentiment: Profit gains were partly boosted by a one-time benefit. A roughly $994 million tariff refund significantly increased quarterly profitability, raising questions about how sustainable the EPS improvement will be once that benefit fades. Target tariff refund analysis
• Negative Sentiment: Valuation and execution risks could limit further upside. With shares near their annual high and trading at approximately 16.4 times earnings, investors may demand continued sales, traffic and margin improvement. The elevated valuation leaves less room for disappointment if the turnaround loses momentum.

Target Company Profile

Target Corporation (NYSE: TGT) is a U.S.-based general merchandise retailer headquartered in Minneapolis, Minnesota. The company operates a network of full-line and small-format stores across the United States alongside a national e-commerce platform and mobile app. Target’s retail assortment spans apparel, home goods, electronics, groceries and household essentials, plus beauty, baby and pet categories. The firm complements national brands with a portfolio of owned and exclusive labels and partnerships that help differentiate its merchandise assortment.

Target traces its roots to the Dayton Company, founded by George Dayton in 1902; the Target discount chain was launched in 1962 and the parent company later adopted the Target Corporation name.