SAP sued by o9 Solutions over alleged trade secret theft
Investing.com - Bernstein SocGen Group has reduced its price target on Target (NYSE:TGT) to $80.00 from $87.00 while maintaining an Underperform rating on the stock. The new target represents a significant downside from Target’s current price of $86.08, which is already trading near its 52-week low of $85.30, according to InvestingPro data.
The firm cited concerns about Target ’s upcoming capital expenditure plans, which include an incremental $1 billion to be invested in fiscal year 2026 across merchandising, store experience, and technology initiatives.
Bernstein SocGen analyst Zhihan Ma expressed skepticism about Target’s current position, noting that the retailer has underinvested in omni-channel supply chain and technology compared to Walmart, resulting in a labor-intensive e-commerce fulfillment system that creates persistent margin pressure.
The research firm indicated it wouldn’t be surprised if Target’s new management team announces additional structural investments at its Investor Day in March, potentially leading to a rebasing of margins.
Bernstein SocGen remains bearish on Target’s near-term trends and cautious about the probability of a successful turnaround despite the planned investments in stores, technology, and supply chain. Despite these concerns, InvestingPro data shows Target trading at a P/E ratio of just 9.99 and offering a substantial 5.3% dividend yield. InvestingPro Tips highlight that Target has maintained dividend payments for 55 consecutive years, a potential bright spot for income-focused investors. According to InvestingPro’s Fair Value analysis, the stock appears undervalued at current levels. For comprehensive analysis of Target and 1,400+ other stocks, explore the Pro Research Reports available on InvestingPro.
In other recent news, Target’s third-quarter earnings report revealed adjusted earnings per share of $1.78, surpassing the FactSet consensus estimate of $1.71. However, comparable sales fell by 2.7%, missing analysts’ expectations of a 2.1% drop. Evercore ISI raised its price target for Target to $100 from $95, highlighting new CEO Michael Fiddelke’s focus on design authority and technology. Meanwhile, Telsey Advisory Group maintained its Market Perform rating with a price target of $110, despite the mixed quarterly results. BMO Capital lowered its price target to $90 from $95, citing supply chain concerns and noting risks ahead. BofA Securities also reduced its price target to $80 from $93, pointing to slowing digital growth and challenges in digital advertising. RBC Capital adjusted its price target to $99 from $107, expressing optimism about Target’s growth initiatives despite the reduction. These developments reflect ongoing challenges and strategic shifts at Target as it navigates a complex retail environment.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.