Target stock price target reiterated at $108 by Evercore ISI ahead of earnings

Investing.com - Evercore ISI has reiterated an In Line rating and $108.00 price target on Target (NYSE:TGT), currently trading at $103.02, ahead of the retailer’s upcoming earnings report on August 20. According to InvestingPro data, the retail giant, with a market cap of $46.81B, appears undervalued based on its Fair Value analysis.

The research firm has instituted a positive Tactical Trading Call on Target , suggesting potential for a high single-digit to low double-digit stock increase around the earnings announcement. Evercore sees near-term upside potential to $110-$115 on the earnings print. This optimism aligns with InvestingPro data showing 10 analysts have revised their earnings upward for the upcoming period, while the stock trades at an attractive P/E ratio of 11.34.

Evercore’s analysis indicates Target’s second-quarter comparable sales likely landed around -3%, aligning with broader Street expectations. The firm views earnings per share of approximately $2.01 as reasonable and maintains its estimate in line with consensus.

The retailer’s previous guidance of $7-9 for calendar year 2025 earnings per share is expected to be maintained, with current Street estimates at $7.29 already near the lower end of that range. Evercore notes that investor discussions suggest market expectations for 2025 EPS are also around $7.

While the Target-Ulta partnership ending has received attention recently, Evercore believes Target is seeking new partners and opportunities to scale, potentially including Warby Parker. With annual revenue of $105.88B and a solid dividend yield of 4.43%, Target maintains strong fundamentals. For deeper insights into Target’s financial health and growth potential, access the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Target has announced the conclusion of its partnership with Ulta Beauty, which will end in August 2026. The collaboration involved co-located selling spaces in over 600 Target stores. Despite this change, Mizuho has maintained a Neutral rating for Target with a price target of $88.00. Meanwhile, Telsey Advisory Group has reiterated a Market Perform rating on Target, projecting a 3.5% decline in comparable sales and a 14% drop in earnings per share for the second quarter of 2025.

TD Cowen has also adjusted its outlook, lowering Target’s price target to $100.00 due to an anticipated weaker second-quarter performance. In contrast, Truist Securities raised its price target for Target to $107.00, citing better-than-expected sales in the second quarter, potentially linked to a decline in Temu’s sales. These developments reflect a range of analyst perspectives on Target’s financial outlook amid recent changes.

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