Target cautions shareholders about TRC Capital’s mini-tender offer

MINNEAPOLIS - Target Corporation (NYSE:TGT), currently trading at $88.13 with a market capitalization of $40.05 billion, on Monday alerted shareholders about an unsolicited mini-tender offer from TRC Capital Corporation to purchase up to 1.5 million shares of Target’s common stock at $89.00 per share in cash. According to InvestingPro analysis, Target’s stock is currently trading near its 52-week low of $87.35, with metrics suggesting the stock may be undervalued.

The offer represents approximately 0.33 percent of Target’s outstanding common stock and is scheduled to expire on October 6, 2025.

In a press release statement, Target emphasized it is not affiliated with TRC Capital and does not endorse the mini-tender offer. The retailer expressed no opinion on the offer but encouraged shareholders to obtain current market quotations, consult with their brokers or financial advisors, and exercise caution.

Mini-tender offers seek less than five percent of a company’s outstanding shares, allowing them to avoid many investor protections and disclosure requirements that apply to larger bids under U.S. securities laws.

Target noted that TRC Capital has made similar unsolicited mini-tender offers for shares of other public companies. The retailer referenced U.S. Securities and Exchange Commission (SEC) cautions about mini-tender offers, pointing out that some bidders make these offers at below-market prices.

The Minneapolis-based retailer urged brokers, dealers and market participants to review SEC guidance regarding mini-tender offer dissemination and disclosures, and requested that its news release be included with all distributions of materials relating to TRC Capital’s offer.

In other recent news, Target Corporation announced a quarterly dividend of $1.14 per share, continuing its long-standing tradition of consecutive dividend payments since 1967. RBC Capital and TD Cowen both raised their price targets for Target, to $107 and $110 respectively, with RBC Capital maintaining an Outperform rating and TD Cowen keeping a Hold rating. These adjustments come as Target navigates a leadership transition, with Michael Fiddelke set to take over as CEO in February 2026.

KeyBanc has reiterated its Sector Weight rating on the stock following the company’s second-quarter results and CEO transition announcement. Mizuho maintained a Neutral rating and a $94 price target after Target’s disappointing second-quarter performance, noting investor concerns about leadership changes. Despite a 1.9% decline in second-quarter comparable sales, Target’s performance showed improvement from the previous quarter’s 3.8% drop. The company has reiterated its full-year guidance, suggesting that low-single-digit comparable sales declines may persist. These developments highlight the challenges and strategic shifts Target is undergoing amidst changes in its leadership and market positioning.

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