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Investing.com - BMO Capital lowered its price target on Target (NYSE:TGT) to $90.00 from $95.00 on Thursday, while maintaining a Market Perform rating on the stock.
The price target reduction follows Target’s third-quarter fiscal 2026 results, which BMO described as "in line with depressed expectations." The firm noted that while Target ’s management highlighted modest areas of progress, BMO identified increasing risks ahead.
BMO Capital expressed concern that Target may need a "more significant investment" in its supply chain operations, where the retailer’s model "continues to evolve." The firm also suggested potential additional labor investments might be necessary to support structural and sustainable growth.
The analyst’s decision to trim the price target was based on slightly lower fiscal 2027 earnings per share estimates, applying an 11-12x price-to-earnings ratio to the stock.
The firm’s analysis comes amid what it characterized as an "increasingly competitive backdrop" for the retail giant, suggesting ongoing challenges in the sector.
In other recent news, Target Corporation reported its Q3 2025 earnings, revealing an adjusted EPS of $1.78, which exceeded analyst expectations of $1.71. However, the company’s revenue slightly missed forecasts, coming in at $25.27 billion compared to the anticipated $25.29 billion. Following these results, several financial firms adjusted their price targets for Target. Goldman Sachs raised its price target to $97 while maintaining a Neutral rating, citing the earnings beat despite a top-line miss. Conversely, Mizuho lowered its target to $88, noting a lackluster third-quarter performance and reduced guidance. BofA Securities also reduced its price target to $80, expressing concerns about slowing digital growth. Meanwhile, RBC Capital adjusted its target to $99, maintaining an Outperform rating and expressing optimism about Target’s growth initiatives. These developments reflect varied perspectives on Target’s recent performance and future prospects.
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