Target stock price target raised to $110 from $100 at TD Cowen

Investing.com - TD Cowen raised its price target on Target (NYSE:TGT) to $110.00 from $100.00 on Thursday, while maintaining a Hold rating on the stock. According to InvestingPro data, Target currently trades at an attractive P/E ratio of 10.6 and appears undervalued based on Fair Value analysis.

The firm noted that Target showed improvement quarter-over-quarter, with second-quarter comparable sales declining 1.9% compared to a 3.8% drop in the first quarter. The $105.6 billion revenue retailer also reiterated its full-year guidance, which implies low-single-digit percentage comparable sales declines will likely continue. Target maintains a strong dividend yield of 4.62% and has increased dividends for 54 consecutive years.

TD Cowen highlighted ongoing challenges for Target, including merchandise margin pressure of 130 basis points and sales declines in key categories, with home goods down 6% and apparel falling 4%. The retailer did see some bright spots in denim, performance wear, and women’s categories.

The firm observed that Target’s new CEO is focused on "urgent change" and suggested the executive should take more significant actions regarding owned brands, exclusivity, and AI technology implementation.

TD Cowen also pointed to intensifying competitive pressures from lower-cost alternatives including off-price retailers, SHEIN, and Temu, noting that "owning style and design has become harder" for Target amid the changing retail landscape.

In other recent news, Target reported its second-quarter results, revealing a 1.9% decline in comparable sales and a 19% year-over-year decrease in profit. Despite the weaker-than-expected performance, Target managed to beat analyst expectations of a 3.0% sales drop. The company experienced a notable contrast between brick-and-mortar sales, which fell by 3.2%, and e-commerce growth, which rose by 4.3%. The announcement of Michael Fiddelke as the new CEO, effective February 1, 2026, was met with mixed reactions, as some investors had hoped for an external hire to address ongoing challenges. KeyBanc maintained its Sector Weight rating, while Mizuho (NYSE:MFG) reiterated a Neutral rating with a $94 price target, noting concerns over leadership decisions. Evercore ISI adjusted its price target to $106, maintaining an "In Line" rating, citing a loss in market share. Wells Fargo (NYSE:WFC), however, reaffirmed its Overweight rating and a $115 price target despite the CEO announcement. Meanwhile, Bernstein raised its price target slightly to $87, while maintaining an Underperform rating, pointing out the margin pressure from e-commerce growth.

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