BMO maintains Target stock rating, price target at $120

On Wednesday, BMO Capital Markets maintained its Market Perform rating on Target Corporation (NYSE:TGT) with a steady price target of $120.00. The decision follows Target’s 2025 analyst day, which presented a mixed picture according to BMO analyst Kelly Bania. Currently trading at $117.14 with a P/E ratio of 13.63, Target shares have declined 12.61% year-to-date, according to InvestingPro data. Bania noted that while the fiscal 2026 earnings per share (EPS) guidance aligned with expectations, the forecast included a projection for another year of 0% comparable sales growth. This outlook, coupled with a weak performance in February, a step back from providing quarterly guidance, and an abandonment of long-term margin goals, has left investors facing a broad spectrum of potential outcomes for the retail giant in the 2025 calendar year and beyond.

Bania’s analysis led to a reduction in the estimated fiscal 2026 EPS to $8.81, factoring in the anticipated impact of higher tariffs from China and lower comparable sales. Despite these adjustments, BMO’s stance on Target’s stock remains unchanged, with a continued Market Perform rating and a $120 price target. Notably, InvestingPro data shows Target has maintained its position as a dividend aristocrat, raising dividends for 54 consecutive years, with a current yield of 3.82%.

The analyst’s commentary highlighted several factors contributing to the cautious outlook, including minimal details provided by Target on how the evolving tariff situation might affect the company’s operations. Bania’s remarks suggest that the uncertainty surrounding these external factors could have significant implications for Target’s financial performance in the coming years.

Target’s recent analyst day was an opportunity for the company to outline its strategic plans and financial expectations to analysts and investors. However, the lack of clarity on certain key issues, such as the impact of tariffs and the absence of quarterly and long-term guidance, appears to have left market watchers with unanswered questions about the retailer’s future trajectory.

BMO’s reaffirmed Market Perform rating and $120.00 price target on Target shares reflect a cautious but steady outlook for the company as it navigates the challenges ahead. The firm’s analysis suggests that while Target’s fiscal 2026 EPS guidance is in line with expectations, there are still variables that could influence the retailer’s performance in the coming years. According to InvestingPro analysis, Target appears undervalued at current levels, with analyst price targets ranging from $100 to $165. For deeper insights into Target’s valuation and 12+ additional ProTips, subscribers can access the comprehensive Pro Research Report available on the platform.

In other recent news, Target Corporation has been the focus of several analyst revisions following its fourth-quarter earnings report and 2025 guidance. Truist Securities, Bernstein, and Piper Sandler have each reduced their price targets for Target to $124, citing various concerns about the company’s financial performance and competitive pressures. Truist highlighted Target’s slow start to the first quarter and increased competition, while Bernstein expressed doubts about the company’s ability to grow both sales and profitability. Piper Sandler noted sales softness attributed to adverse weather and consumer confidence issues, although they acknowledged Target’s efforts to improve customer engagement and operational metrics.

JPMorgan also lowered its price target for Target to $140, maintaining a Neutral rating and emphasizing the company’s strategic focus on enhancing the customer experience and expanding its marketplace. Evercore ISI adjusted its price target to $130, pointing to positive traffic growth but also noting broader market concerns such as trade wars. Target’s recent financial disclosures have shown a modest 1.5% increase in comparable sales for the fourth quarter, though analysts remain cautious about the company’s prospects amid competitive challenges from rivals like Walmart (NYSE:WMT). Despite these challenges, Target continues to invest in customer experience and product innovation to maintain its market position.

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