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Investing.com - Morgan Stanley (NYSE:MS) has reiterated an Overweight rating and $112.00 price target on Target (NYSE:TGT), currently trading at $105.36, as the $47.77 billion retailer navigates a leadership transition. According to InvestingPro analysis, Target appears undervalued at current levels.
The firm notes that while Target’s second-quarter 2025 results were mostly in line with expectations, uncertainty may cloud the company’s outlook following the appointment of internal candidate Michael Fiddelke as CEO to succeed Brian Cornell.
Morgan Stanley suggests the market may view this internal promotion as a sign of strategic continuity rather than the transformational change some investors had anticipated from an external candidate.
Despite reduced visibility, the firm believes Target’s stock has limited downside risk, citing sequential business stabilization with fiscal year 2025 earnings per share expected to maintain a floor of approximately $7.00, and real estate assets estimated at around $30 billion providing additional support.
Morgan Stanley identifies building credibility through decisive strategic changes as a key challenge for the new CEO, potentially including supply chain revamping, enhanced merchandising, and improved value offerings.
In other recent news, Target Corporation announced that Michael J. Fiddelke will become the company’s next Chief Executive Officer, effective February 1, 2026. Fiddelke, who is currently Target’s Chief Operating Officer, will succeed Brian Cornell, who will transition to the role of executive chair of the Board of Directors. This leadership change comes as Fiddelke, a 20-year veteran at Target, has held various leadership roles, including Chief Financial Officer, where he implemented significant efficiencies. Additionally, Evercore ISI has reiterated an In Line rating with a $108 price target for Target ahead of its upcoming earnings report, indicating potential stock movement around the announcement. Meanwhile, Target’s partnership with Ulta Beauty (NASDAQ:ULTA) is set to end in August 2026, as both companies have mutually agreed not to renew the shop-in-shop arrangement. This partnership, which began in 2021, will continue to operate in Target stores and online until the agreement expires. Mizuho (NYSE:MFG) has maintained a Neutral rating and an $88 price target for Target, reflecting the end of the Ulta collaboration. These developments provide insights into Target’s strategic changes and market positioning.
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