Zacks Research Analysts Raise Earnings Estimates for Target

Key Points

• Zacks Research raised Target’s earnings forecasts, increasing Q3 2027 EPS to $2.05 from $1.91 and projecting full-year EPS of $9.53 for 2028 and $10.18 for 2029.
• Target recently reported quarterly EPS of $4.11, well above the $2.35 consensus estimate, while revenue rose 5.3% year over year to $26.54 billion. Despite improving results, Zacks maintains a “Hold” rating, and analysts’ average rating is also “Hold,” with a $159.52 price target.
• Target increased its quarterly dividend to $1.16 per share, equivalent to an annualized $4.64 payout and a 2.8% yield.

Target Corporation (NYSE:TGT - Free Report) - Equities research analysts at Zacks Research upped their Q3 2027 EPS estimates for Target in a research report issued on Tuesday, September 1st. Zacks Research analyst Team now expects that the retailer will post earnings per share of $2.05 for the quarter, up from their previous forecast of $1.91. Zacks Research currently has a "Hold" rating on the stock. The consensus estimate for Target's current full-year earnings is $8.84 per share. Zacks Research also issued estimates for Target's Q4 2027 earnings at $2.70 EPS, Q1 2028 earnings at $1.84 EPS, Q2 2028 earnings at $2.63 EPS, Q3 2028 earnings at $2.20 EPS, Q4 2028 earnings at $2.86 EPS, FY2028 earnings at $9.53 EPS, Q1 2029 earnings at $1.97 EPS, Q2 2029 earnings at $2.80 EPS and FY2029 earnings at $10.18 EPS.

Target (NYSE:TGT - Get Free Report) last released its quarterly earnings data on Wednesday, August 19th. The retailer reported $4.11 EPS for the quarter, topping analysts' consensus estimates of $2.35 by $1.76. Target had a net margin of 4.08% and a return on equity of 23.23%. The firm had revenue of $26.54 billion for the quarter, compared to the consensus estimate of $26.13 billion. During the same quarter in the previous year, the firm earned $2.05 earnings per share. The firm's revenue was up 5.3% on a year-over-year basis. Target has set its FY 2026 guidance at 9.900-10.900 EPS.

A number of other research firms have also recently weighed in on TGT. Bank of America restated an "underperform" rating and issued a $124.00 price target (up from $110.00) on shares of Target in a report on Wednesday, August 12th. DA Davidson boosted their target price on Target from $170.00 to $185.00 and gave the stock a "buy" rating in a research report on Wednesday, August 19th. The Goldman Sachs Group upped their target price on Target from $127.00 to $161.00 and gave the company a "neutral" rating in a report on Thursday, August 20th. Wells Fargo & Company raised their price target on Target from $165.00 to $185.00 and gave the company an "overweight" rating in a research report on Thursday, August 20th. Finally, Jefferies Financial Group lifted their price target on Target from $161.00 to $177.00 and gave the stock a "buy" rating in a research note on Friday, August 14th. Eleven analysts have rated the stock with a Buy rating, eighteen have assigned a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of "Hold" and an average price target of $159.52.

Target Price Performance

TGT stock opened at $163.75 on Wednesday. The firm has a 50 day moving average of $145.43 and a 200-day moving average of $130.64. Target has a 12-month low of $83.44 and a 12-month high of $170.75. The company has a current ratio of 0.99, a quick ratio of 0.36 and a debt-to-equity ratio of 0.80. The company has a market cap of $74.39 billion, a price-to-earnings ratio of 17.00, a PEG ratio of 3.00 and a beta of 0.99.

Target Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, September 1st. Investors of record on Wednesday, August 12th were paid a $1.16 dividend. This represents a $4.64 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date of this dividend was Wednesday, August 12th. This is an increase from Target's previous quarterly dividend of $1.14. Target's dividend payout ratio is currently 48.18%.

Insider Buying and Selling

In other Target news, insider Melissa K. Kremer sold 15,500 shares of the stock in a transaction on Monday, August 24th. The stock was sold at an average price of $169.96, for a total transaction of $2,634,380.00. Following the sale, the insider owned 56,981 shares in the company, valued at approximately $9,684,490.76. This represents a 21.38% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CAO Matthew A. Liegel sold 926 shares of the firm's stock in a transaction on Friday, August 21st. The stock was sold at an average price of $163.51, for a total value of $151,410.26. Following the transaction, the chief accounting officer directly owned 12,266 shares of the company's stock, valued at $2,005,613.66. The trade was a 7.02% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.13% of the stock is currently owned by corporate insiders.

Institutional Trading of Target

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Kimelman & Baird LLC purchased a new position in Target in the 2nd quarter valued at about $26,000. Richardson Financial Services Inc. purchased a new stake in shares of Target during the second quarter worth about $26,000. Archer Investment Corp acquired a new position in shares of Target in the second quarter valued at approximately $30,000. WFA of San Diego LLC acquired a new position in shares of Target in the second quarter valued at approximately $25,000. Finally, Jessup Wealth Management Inc purchased a new position in shares of Target during the fourth quarter valued at approximately $25,000. Hedge funds and other institutional investors own 79.73% of the company's stock.

Key Target News

Here are the key news stories impacting Target this week:

• Positive Sentiment: Zacks Research raised multiple long-term earnings forecasts, including FY2028 EPS to $9.53 from $8.90 and FY2029 EPS to $10.18 from $9.52. Estimates were also increased for several quarterly periods through 2029, suggesting greater confidence in Target’s earnings recovery and supporting the bullish share-price momentum.
• Positive Sentiment: Target’s full-year outlook was recently raised, signaling management’s confidence in its turnaround strategy and helping reinforce expectations for improving profitability. 1 Reason Target Stock Is Worth a Second Look This Month
• Positive Sentiment: The retailer is expanding its beauty business nationwide with a specialty-store concept featuring about 90 brands, dedicated advisers and more than 1,600 products. The initiative could help Target drive traffic and capture higher-growth discretionary spending following the end of its Ulta partnership. Target launches specialty beauty concept at stores nationwide as Ulta partnership ends
• Positive Sentiment: Target’s improving momentum, strategic initiatives and relatively lower valuation have increased its appeal compared with other discount retailers. Costco vs. Target: Which Discount Retailer Holds More Promise Now?
• Neutral Sentiment: Target’s shares have gained significantly in 2026 and now trade near their 52-week high, raising the question of whether continued execution is needed to justify further upside toward $200. Target Stock Is Up 66% in 2026: What Will It Take to Break Through $200?
• Negative Sentiment: A recent Halloween costume controversy represents another reputational misstep that could undermine Target’s efforts to win back customers. Zacks’ continued “Hold” rating also indicates that analysts see execution risks despite the improved forecasts.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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