Zacks Research Downgrades Target (NYSE:TGT) to Hold

Target (NYSE:TGT) was downgraded by stock analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a note issued to investors on Wednesday,Zacks.com reports.

A number of other analysts also recently issued reports on the stock. BMO Capital Markets increased their target price on shares of Target from $150.00 to $160.00 and gave the stock a “market perform” rating in a research report on Thursday. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Target in a research report on Friday, July 31st. DA Davidson boosted their price objective on shares of Target from $170.00 to $185.00 and gave the stock a “buy” rating in a research note on Wednesday. KeyCorp reissued a “sector weight” rating on shares of Target in a research report on Thursday. Finally, Wolfe Research set a $169.00 target price on shares of Target in a research note on Monday, August 3rd. Eleven equities research analysts have rated the stock with a Buy rating, eighteen have assigned a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and an average price target of $159.52.

Target Price Performance

Shares of Target stock opened at $158.04 on Wednesday. The business’s fifty day moving average price is $140.21 and its 200 day moving average price is $127.75. Target has a twelve month low of $83.44 and a twelve month high of $161.98. The company has a current ratio of 0.99, a quick ratio of 0.30 and a debt-to-equity ratio of 0.80. The stock has a market capitalization of $71.78 billion, a P/E ratio of 16.41, a PEG ratio of 2.09 and a beta of 0.97.

Target (NYSE:TGT) last announced its quarterly earnings results on Wednesday, August 19th. The retailer reported $4.11 EPS for the quarter, topping the consensus estimate of $2.35 by $1.76. The company had revenue of $26.54 billion during the quarter, compared to analyst estimates of $26.13 billion. Target had a return on equity of 23.23% and a net margin of 4.08%.The firm’s revenue was up 5.3% on a year-over-year basis. During the same period in the prior year, the firm posted $2.05 earnings per share. Target has set its FY 2026 guidance at 9.900-10.900 EPS. As a group, research analysts anticipate that Target will post 10.4 earnings per share for the current year.

Insiders Place Their Bets

In other Target news, insider Cara A. Sylvester sold 10,000 shares of the stock in a transaction that occurred on Friday, May 29th. The shares were sold at an average price of $125.89, for a total value of $1,258,900.00. Following the completion of the sale, the insider owned 45,930 shares of the company’s stock, valued at $5,782,127.70. This trade represents a 17.88% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.13% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the company. WFA of San Diego LLC purchased a new stake in Target during the 2nd quarter worth $25,000. Jessup Wealth Management Inc acquired a new position in Target in the 4th quarter worth $25,000. Richardson Financial Services Inc. purchased a new position in Target in the 2nd quarter valued at about $26,000. Kimelman & Baird LLC purchased a new position in Target in the 2nd quarter valued at about $26,000. Finally, Altshuler Shaham Ltd acquired a new stake in shares of Target during the fourth quarter valued at about $26,000. 79.73% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Target

Here are the key news stories impacting Target this week:

• Positive Sentiment: Q2 earnings and sales beat expectations. Target reported $26.54 billion in revenue, up 5.3% year over year and above the $26.13 billion consensus estimate. Reported EPS was $4.11 versus expectations of $2.35, while adjusted EPS was reported by some analysts at $2.46 versus a $2.30 estimate. Target Q2 earnings report
• Positive Sentiment: Consumer engagement improved. Guest traffic increased 3.6%, comparable sales rose 3.8%, and digital activity—including traffic from artificial-intelligence platforms—helped support stronger sales. Management also cited merchandising resets and improved execution as evidence that its turnaround is gaining traction. Target traffic and sales article
• Positive Sentiment: Target raised its fiscal 2026 guidance. The company increased its sales and earnings outlook, with current guidance calling for EPS of $9.90 to $10.90. Several analysts followed with higher price targets: RBC raised its target to $178 and maintained an outperform rating, while Citigroup and TD Cowen lifted targets to $160 but retained neutral or hold ratings.
• Neutral Sentiment: Analyst opinion remains mixed. The higher targets indicate improving confidence in the turnaround, but neutral, hold and sector-weight ratings suggest Wall Street believes much of the recovery may already be reflected in the shares.
• Negative Sentiment: Profit gains were partly boosted by a one-time benefit. A roughly $994 million tariff refund significantly increased quarterly profitability, raising questions about how sustainable the EPS improvement will be once that benefit fades. Target tariff refund analysis
• Negative Sentiment: Valuation and execution risks could limit further upside. With shares near their annual high and trading at approximately 16.4 times earnings, investors may demand continued sales, traffic and margin improvement. The elevated valuation leaves less room for disappointment if the turnaround loses momentum.

Target Company Profile

Target Corporation (NYSE: TGT) is a U.S.-based general merchandise retailer headquartered in Minneapolis, Minnesota. The company operates a network of full-line and small-format stores across the United States alongside a national e-commerce platform and mobile app. Target’s retail assortment spans apparel, home goods, electronics, groceries and household essentials, plus beauty, baby and pet categories. The firm complements national brands with a portfolio of owned and exclusive labels and partnerships that help differentiate its merchandise assortment.

Target traces its roots to the Dayton Company, founded by George Dayton in 1902; the Target discount chain was launched in 1962 and the parent company later adopted the Target Corporation name.