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On Wednesday, UBS analyst Michael Lasser adjusted the price target for Target Corporation (NYSE:TGT) stock, reducing it to $155 from the previous $170, while retaining a Buy rating for the company. The stock, currently trading near its 52-week low of $112.53, appears undervalued according to InvestingPro analysis, with a P/E ratio of 12.91 and an attractive dividend yield of 3.82%.
Lasser noted the fluctuating demand trends that Target has experienced over the past couple of years, attributing the volatility to a combination of external factors such as unpredictable weather and inconsistent consumer interest in discretionary products. However, he emphasized that there are measures within Target’s control that could help to alleviate these challenges. Despite these headwinds, Target maintains its position as a prominent player in consumer retail, generating over $106 billion in revenue. InvestingPro subscribers can access 8 additional key insights about Target’s performance and prospects.
The analyst highlighted that Target is aware of the necessity to enhance various aspects of its operations, including execution, inventory reliability, demand forecasting, and lead times. In line with this understanding, Target is taking steps to invest in these areas. One of the key initiatives mentioned by Lasser is the company’s plan to reduce lead times in certain categories, such as apparel, by 20%. Notably, Target has demonstrated long-term financial stability, having raised its dividend for 54 consecutive years, a track record that reinforces investor confidence despite current challenges.
Moreover, Target is adapting its strategy for home goods by shifting some of the category’s focus to its marketplace. This move is intended to prevent the supply chain from becoming overburdened. Lasser’s commentary suggests that while Target has faced a complex market environment, its proactive efforts to improve business operations could positively influence its performance in the future.
Despite the lowered price target, the Buy rating indicates that UBS maintains a positive outlook on Target’s stock, reflecting confidence in the company’s strategic investments and potential to navigate through the observed headwinds.
In other recent news, several financial firms have updated their outlooks on Target Corporation, focusing on earnings, revenue, and stock ratings. CFRA analyst Arun Sundaram adjusted Target’s price target from $162.00 to $147.00 while maintaining a Buy rating, citing a revised fiscal year 2026 EPS estimate of $9.16. RBC Capital Markets also revised its price target slightly downward from $153.00 to $151.00, maintaining an Outperform rating, with a revised 2025 EPS estimate of $8.90. BMO Capital Markets kept its price target steady at $120.00 with a Market Perform rating, highlighting concerns over 0% comparable sales growth and tariff impacts.
Truist Securities adjusted its price target from $134.00 to $124.00, maintaining a Hold rating, following Target’s fourth-quarter earnings and highlighting competitive challenges and a slow start to the first quarter. Bernstein analysts also reduced their price target from $142.00 to $124.00, maintaining a Market Perform rating, and expressed concerns over Target’s ability to grow sales and profitability simultaneously. Across these analyses, the focus remains on Target’s earnings projections, competitive pressures, and strategic challenges, with varying degrees of optimism about the company’s future performance.
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