Target stock rating reiterated at Sector Weight by KeyBanc amid CEO transition

Investing.com - KeyBanc has reiterated its Sector Weight rating on Target (NYSE:TGT) following what the firm described as "mixed" third-quarter results that aligned with anticipated sales challenges. The retailer’s stock is currently trading near its 52-week low at $86.08, having declined 33.5% year-to-date.

The firm noted that Target is accelerating its transformation efforts as it navigates ongoing discretionary spending challenges in the retail sector. These challenges are reflected in Target’s recent performance, with revenue declining 2.16% over the last twelve months.

KeyBanc identified the key question for Target as how quickly and effectively incoming CEO Michael Fiddelke can implement and successfully drive change at the retailer.

The research firm expressed optimism that both consumers and Target could be in an improved position in 2026, suggesting potential for longer-term recovery.

Despite this cautiously positive outlook, KeyBanc highlighted concerns about the "highly competitive environment" where Walmart and Amazon continue to gain market share at Target’s expense. For deeper insights into Target’s competitive position and over a dozen additional ProTips, check out the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Target has been the focus of several analyst evaluations following its latest financial results. The company reported adjusted earnings per share of $1.78 for the third quarter of fiscal 2025, surpassing the FactSet consensus estimate of $1.71. However, comparable sales fell by 2.7%, which was worse than the anticipated 2.1% decline. Bernstein SocGen Group lowered its price target for Target to $80, citing concerns over upcoming capital expenditures, while BofA Securities also reduced its target to $80 due to worries about slowing digital growth. BMO Capital decreased its price target to $90, maintaining a Market Perform rating, and expressed concerns about supply chain issues. In contrast, Evercore ISI raised its price target to $100, highlighting the new CEO’s focus on revitalizing the company’s business through design, shopping experience, and technology improvements. Telsey Advisory Group maintained its Market Perform rating with a $110 price target, noting the mixed results in the third quarter. These developments reflect the varied perspectives among analysts regarding Target’s future prospects.

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