Target (NYSE:TGT) Downgraded by Freedom Capital to "Hold"

Key Points

• Freedom Capital downgraded Target from “strong-buy” to “hold,” while the broader analyst view remains mixed with a consensus rating of Hold and a consensus target price of $120.18.
• Target’s latest quarter was better than expected, with EPS of $1.71 versus $1.47 expected and revenue of $25.44 billion, up 6.7% year over year. Management also raised full-year guidance, suggesting confidence in the turnaround.
• Despite the earnings beat, some analysts and market commentary remain cautious, pointing to cost headwinds and valuation concerns that could limit near-term upside. The stock recently traded near $122.91, close to its 50-day average and below its 52-week high of $133.10.

Target (NYSE:TGT - Get Free Report) was downgraded by investment analysts at Freedom Capital from a "strong-buy" rating to a "hold" rating in a research note issued to investors on Wednesday,Zacks.com reports.

A number of other brokerages have also recently commented on TGT. BNP Paribas Exane increased their price target on shares of Target from $63.00 to $88.00 and gave the company an "underperform" rating in a research note on Wednesday, March 4th. Wells Fargo & Company increased their price objective on shares of Target from $135.00 to $140.00 and gave the company an "overweight" rating in a research report on Tuesday, May 12th. The Goldman Sachs Group increased their price objective on shares of Target from $91.00 to $112.00 and gave the company a "neutral" rating in a research report on Wednesday, March 4th. DA Davidson increased their price objective on shares of Target from $120.00 to $140.00 and gave the company a "buy" rating in a research report on Monday, March 9th. Finally, Evercore set a $130.00 price objective on shares of Target in a research report on Monday. Eleven analysts have rated the stock with a Buy rating, nineteen have given a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat, Target has a consensus rating of "Hold" and a consensus target price of $120.18.

Target Stock Performance

Shares of TGT opened at $122.91 on Wednesday. The stock has a market capitalization of $55.82 billion, a price-to-earnings ratio of 15.12, a PEG ratio of 3.78 and a beta of 1.01. The company has a current ratio of 0.94, a quick ratio of 0.36 and a debt-to-equity ratio of 0.89. The firm has a fifty day simple moving average of $122.25 and a 200 day simple moving average of $109.26. Target has a 12 month low of $83.44 and a 12 month high of $133.10.

Target (NYSE:TGT - Get Free Report) last announced its quarterly earnings results on Wednesday, May 20th. The retailer reported $1.71 EPS for the quarter, beating analysts' consensus estimates of $1.47 by $0.24. The firm had revenue of $25.44 billion during the quarter, compared to analysts' expectations of $24.66 billion. Target had a net margin of 3.54% and a return on equity of 22.25%. The company's revenue for the quarter was up 6.7% compared to the same quarter last year. During the same quarter last year, the company posted $1.30 earnings per share. Target has set its FY 2026 guidance at 7.500-8.500 EPS. Research analysts forecast that Target will post 8.06 EPS for the current fiscal year.

Insider Transactions at Target

In other Target news, CAO Matthew A. Liegel sold 2,053 shares of the business's stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $117.19, for a total value of $240,591.07. Following the completion of the sale, the chief accounting officer owned 12,143 shares of the company's stock, valued at $1,423,038.17. The trade was a 14.46% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. 0.16% of the stock is owned by corporate insiders.

Institutional Trading of Target

A number of institutional investors have recently bought and sold shares of the business. Whipplewood Advisors LLC boosted its holdings in Target by 16.0% in the 1st quarter. Whipplewood Advisors LLC now owns 580 shares of the retailer's stock valued at $70,000 after purchasing an additional 80 shares during the period. Prosperity Consulting Group LLC increased its holdings in Target by 3.4% in the 1st quarter. Prosperity Consulting Group LLC now owns 2,474 shares of the retailer's stock valued at $300,000 after buying an additional 81 shares during the period. Howe & Rusling Inc. increased its holdings in Target by 3.1% in the 1st quarter. Howe & Rusling Inc. now owns 2,951 shares of the retailer's stock valued at $358,000 after buying an additional 90 shares during the period. Crawford Investment Counsel Inc. increased its holdings in Target by 0.4% in the 4th quarter. Crawford Investment Counsel Inc. now owns 20,163 shares of the retailer's stock valued at $1,971,000 after buying an additional 90 shares during the period. Finally, Valtinson Bruner Financial Planning LLC increased its holdings in Target by 2.6% in the 4th quarter. Valtinson Bruner Financial Planning LLC now owns 3,604 shares of the retailer's stock valued at $352,000 after buying an additional 92 shares during the period. Institutional investors own 79.73% of the company's stock.

Target News Roundup

Here are the key news stories impacting Target this week:

• Positive Sentiment: Target reported first-quarter EPS of $1.71, beating estimates, while revenue rose 6.7% to $25.44 billion and comparable sales strengthened, suggesting its turnaround is gaining traction. Target Corporation Reports First Quarter Earnings
• Positive Sentiment: Management raised full-year guidance, signaling confidence in continued sales momentum and margin improvement, which supports the case for a recovery in 2026. Target Beats Q1 Earnings Estimates on Strong Sales, Raises View
• Neutral Sentiment: Target also named a new supply-chain chief, Jeff England, to help improve logistics and the shopping experience, a longer-term operational step rather than an immediate earnings catalyst. Target Names Jeff England EVP, Chief Global Supply Chain and Logistics Officer
• Negative Sentiment: Even after the beat, some analysts downgraded the stock or argued that the rally has made valuation less attractive, implying limited upside if costs stay elevated. Target: Take Some Chips Off The Table (Rating Downgrade)
• Negative Sentiment: Market commentary says shares fell because investors are wary that cost headwinds and consumer uncertainty could offset the improved sales trend in the near term. Target tops forecasts but shares fall as retailer flags cost headwinds

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.