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Investing.com - DA Davidson has reiterated its Buy rating and $125.00 price target on Target (NYSE:TGT), the $47.8 billion retail giant, following the retailer’s second-quarter 2025 results. According to InvestingPro data, the stock currently trades at an attractive 11.5x earnings multiple and offers a 4.3% dividend yield.
The research firm noted that while Target’s quarterly results "were not good," they were "no worse than expected" and slightly better on both comparable sales and margins compared to previous quarters. InvestingPro analysis indicates the stock is currently trading below its Fair Value, with 10 analysts recently revising their earnings estimates upward.
DA Davidson attributed the negative stock reaction in pre-market trading to two factors: slow progress in Target’s turnaround efforts and investor disappointment that the company chose an internal candidate for its CEO position.
The retailer announced that Brian Cornell would retire, a move that had been long expected, with Michael Fiddelke named as his replacement rather than bringing in an external executive.
The research firm stated that the internal promotion "lacks the pop that a significant external hire would provide," though it clarified this was "not a knock on new CEO Michael Fiddelke, who deserves a chance to prove himself."
In other recent news, Target Corporation’s second-quarter sales slightly exceeded initial expectations, while earnings met the previously adjusted forecasts. Truist Securities has maintained its Hold rating for Target, with a price target of $107.00. Meanwhile, Morgan Stanley (NYSE:MS) reiterated an Overweight rating with a $112.00 price target, acknowledging the company’s leadership transition as a potential uncertainty. Target has announced that Michael J. Fiddelke, currently the Executive Vice President and Chief Operating Officer, will succeed Brian Cornell as CEO on February 1, 2026. Cornell will transition to the role of Executive Chair of the Board.
Fiddelke, a 20-year veteran at Target, has played key roles in merchandising, finance, operations, and human resources. Evercore ISI has maintained an In Line rating with a $108.00 price target ahead of Target’s upcoming earnings report. The firm suggests there could be a stock increase following the earnings announcement, with potential upside to $110-$115. These developments reflect ongoing strategic adjustments within the company.
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