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Investing.com - BMO Capital has reiterated its Market Perform rating and $95.00 price target on Target (NYSE:TGT) following the retailer’s latest quarterly results. According to InvestingPro data, the stock currently trades at an attractive P/E ratio of 10.87 and appears undervalued based on Fair Value analysis.
The retailer reported earnings that were in line with expectations and maintained its previous guidance, though BMO noted that investor reaction to the results lacked enthusiasm.
BMO Capital pointed to what it described as a "largely status quo strategy" at Target, while acknowledging the company’s enhanced focus on style, design and faster decision-making processes that may help reduce market share losses.
The research firm expressed concern about potential risks, specifically noting that Target might need deeper investments in supply chain and digital capabilities to achieve sustainable growth. BMO highlighted that Target’s digital growth was "anemic" at just 4%.
BMO Capital maintained its Market Perform rating and $95 price target on Target stock, reflecting its neutral stance on the retailer’s current trajectory and strategy.
In other recent news, Target has been the subject of several analyst updates following its second-quarter fiscal 2025 results and a leadership change. The company announced the promotion of COO Michael Fiddelke to CEO, which drew mixed reactions from analysts. Guggenheim maintained its Buy rating, suggesting the market reaction was an overreaction, while DA Davidson and Jefferies both lowered their price targets to $115, citing signs of improvement in the company’s performance despite ongoing challenges. Truist Securities also lowered its price target to $102, maintaining a Hold rating, with a focus on the CEO change.
Meanwhile, BofA Securities reaffirmed its Underperform rating with a $93 price target, highlighting concerns over Target’s digital sales growth and competitive position relative to Walmart (NYSE:WMT). The firm pointed out that Target is experiencing increasing long-term sales and margin risks, particularly in digital channels. These developments indicate a cautious outlook from analysts, with varying perspectives on the company’s future performance.
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