Target stock rating maintained by Telsey amid soft consumer spending

Published 14/08/2025, 11:18
Target stock rating maintained by Telsey amid soft consumer spending

Investing.com - Telsey Advisory Group has reiterated its Market Perform rating on Target (NYSE:TGT) with a price target of $100.00. The retailer, currently valued at $47.87 billion, trades at an attractive P/E ratio of 11.5x, according to InvestingPro data.

The research firm maintained its second-quarter 2025 estimates, projecting a comparable sales decline of 3.5% and earnings per share (EPS) drop of 14% to $2.22. For the full fiscal year 2025, Telsey forecasts comparable sales to decrease by 2.5% with EPS declining 13% to $7.71, within Target’s guidance range of $7.00-$9.00.

Telsey’s projections factor in soft consumer spending, particularly in discretionary categories, along with increased costs from promotions and investments in labor and technology. The firm also noted potential pressure from tariffs and negative trends in second-quarter traffic data from Placer.ai.

The analyst report suggests Target appears to be losing market share to competitors including Amazon (NASDAQ:AMZN), Costco (NASDAQ:COST), and Walmart (NYSE:WMT), all of which Telsey rates as Outperform with price targets of $235, $1,100, and $115 respectively. InvestingPro analysis suggests Target is currently undervalued, with additional insights available in the comprehensive Pro Research Report.

Target’s focus on value, loyalty programs and strategic initiatives—including private brands, store expansion and remodels, supply chain improvements, digital services, Drive Up, and the Target+ marketplace—could partially offset these challenges, according to the research note. The company’s revenue currently stands at $105.88 billion for the last twelve months.

In other recent news, Target Corporation’s upcoming second-quarter earnings report has garnered significant attention. TD Cowen has adjusted its earnings per share estimate for Target to $1.95, which is below the consensus estimate, citing weaker comparable sales. On the other hand, Truist Securities raised its price target for Target to $107.00, attributing this to a better-than-expected sales performance in the same quarter. UBS has maintained a Buy rating with a price target of $135.00, noting expectations of a slight decline in comparable sales, potentially mitigated by the Nintendo Switch launch. Bernstein, however, reiterated an Underperform rating with a price target of $86.00, highlighting ongoing turnaround challenges. Fitch Ratings has affirmed Target’s credit rating at ’A’, despite a Negative outlook due to recent execution issues and industry volatility. These developments reflect a mixed sentiment among analysts regarding Target’s current market position and future prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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