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Investing.com - RBC Capital raised its price target on Target (NYSE:TGT) to $107.00 from $104.00 on Thursday, while maintaining an Outperform rating on the retail giant’s shares. According to InvestingPro data, Target currently trades at an attractive P/E ratio of 10.6x, with 10 analysts recently revising their earnings estimates upward.
The firm cited Target’s upcoming leadership transition as an opportunity for the company to address competitive positioning issues that have emerged in recent years, particularly in supply chain capabilities, merchandise assortment, and customer experience. The $43.96 billion market cap retailer has maintained a strong financial position, with consistent dividend payments for 55 consecutive years and a current yield of 4.62%.
RBC adjusted its third-quarter comparable sales estimate for Target to -1.0% from a previous -3.0% forecast, while slightly raising its adjusted earnings per share estimate to $1.58 from $1.57.
For fiscal years 2025 and 2026, RBC now models comparable sales at -1.9% and +1.4% respectively, improvements from prior estimates of -3.1% and +1.3%. The firm also raised its adjusted EPS forecasts to $6.92 for 2025 and $7.67 for 2026.
The new price target is based on approximately 14 times RBC’s revised 2026 adjusted EPS estimate of $7.67, reflecting cautious optimism about Target’s future under incoming CEO Michael Fiddelke, who will replace Brian Cornell as the latter transitions to Executive Chair of the Board.
In other recent news, Target reported a 1.9% decline in second-quarter comparable sales, improving from a 3.8% drop in the first quarter. Despite the decline, Target reiterated its full-year guidance, indicating that low-single-digit percentage sales declines are expected to continue. Evercore ISI noted a 19% year-over-year decrease in profit and adjusted its price target for Target to $106, citing a loss in market share. Meanwhile, TD Cowen raised its price target to $110, acknowledging improvements in Target’s quarterly performance.
KeyBanc maintained its Sector Weight rating following the announcement of Michael Fiddelke as the new CEO, effective February 1, 2026. Mizuho (NYSE:MFG) kept its Neutral rating, expressing concerns over the leadership transition, although it recognized Fiddelke’s qualifications. Wells Fargo (NYSE:WFC) reiterated an Overweight rating with a $115 price target, despite investor disappointment over the internal CEO appointment. These developments reflect the ongoing adjustments and challenges Target is navigating in its business strategy and leadership.
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