Fiserv earnings missed by $0.61, revenue fell short of estimates
Investing.com - Target (NYSE:TGT) received a reiterated Buy rating from Guggenheim, which maintained its $115.00 price target on the retail giant’s stock. According to InvestingPro data, Target currently trades at an attractive P/E ratio of 11x, with the stock showing potential upside based on its Fair Value analysis.
The research firm noted that incoming CEO Michael Fiddelke is implementing the company’s deepest corporate headcount reductions in a decade, positioning himself as an internal change agent focused on streamlining operations and improving organizational agility.
Guggenheim described these workforce reductions as a "necessary, albeit unfortunate step" that should lead to substantive improvements in customer-facing product and service experiences, which could help restore consistent top-line growth amid increasing competition.
The firm specifically highlighted that a "more proactive, fashion-forward merchandising effort in key discretionary categories" would benefit the brand, particularly during periods of healthier consumer spending.
Target shares currently trade at 6.1x 2026E EBITDA, which Guggenheim characterized as "one of the lowest in our coverage," supporting its continued Buy rating despite recent operational challenges. For deeper insights into Target’s valuation and growth prospects, including exclusive financial metrics and additional ProTips, visit InvestingPro.
In other recent news, Target Corporation has been the subject of various developments. RBC Capital raised its price target for Target to $107 from $104, maintaining an Outperform rating, citing the upcoming leadership transition as a chance to improve competitive positioning. Similarly, TD Cowen increased its price target to $110 from $100, noting improvements in quarterly sales performance and the company’s reaffirmed guidance for the year. However, Truist Securities lowered its price target to $83 from $102, maintaining a Hold rating due to perceived operational missteps in merchandising and marketing.
Target also alerted shareholders about an unsolicited mini-tender offer from TRC Capital Corporation to buy up to 1.5 million shares at $89 per share, representing about 0.33% of its outstanding stock. Furthermore, Target announced a quarterly dividend of $1.14 per share, marking the 233rd consecutive dividend payment since going public. These developments reflect a mix of strategic challenges and opportunities for the retail giant.
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