Zacks Research Has Optimistic Outlook of Target Q2 Earnings

Key Points

• Zacks Research raised its Q2 2027 EPS estimate for Target to $2.20 from $2.18, and also lifted longer-term earnings forecasts for FY2027, FY2028, and FY2029, signaling a more optimistic outlook for the retailer.
• Target’s recent quarterly results beat expectations, with EPS of $1.71 versus $1.47 estimated and revenue of $25.44 billion versus $24.66 billion expected, while the company also reaffirmed FY2026 EPS guidance of 7.5 to 8.5.
• Analyst sentiment remains mixed overall: Target has a consensus “Hold” rating and an average price target of $125.93, even as some firms have raised targets and others remain cautious.

Target Corporation (NYSE:TGT - Free Report) - Stock analysts at Zacks Research boosted their Q2 2027 EPS estimates for shares of Target in a research report issued on Wednesday, June 3rd. Zacks Research analyst Team now expects that the retailer will post earnings of $2.20 per share for the quarter, up from their previous estimate of $2.18. The consensus estimate for Target's current full-year earnings is $8.35 per share. Zacks Research also issued estimates for Target's Q3 2027 earnings at $1.91 EPS, Q4 2027 earnings at $2.56 EPS, FY2027 earnings at $8.38 EPS, Q2 2028 earnings at $2.37 EPS, Q3 2028 earnings at $2.04 EPS, Q4 2028 earnings at $2.71 EPS, FY2028 earnings at $8.90 EPS and FY2029 earnings at $9.52 EPS.

Several other analysts also recently commented on the company. BNP Paribas Exane raised their price objective on Target from $63.00 to $88.00 and gave the stock an "underperform" rating in a research note on Wednesday, March 4th. The Goldman Sachs Group raised their price objective on Target from $112.00 to $127.00 and gave the stock a "neutral" rating in a research note on Thursday, May 21st. Wells Fargo & Company raised their price objective on Target from $135.00 to $140.00 and gave the stock an "overweight" rating in a research note on Tuesday, May 12th. Guggenheim reaffirmed a "buy" rating and set a $140.00 price objective on shares of Target in a research note on Wednesday, May 20th. Finally, Mizuho set a $120.00 price objective on Target in a research note on Thursday, March 5th. Eleven equities research analysts have rated the stock with a Buy rating, nineteen have given a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $125.93.

Target Stock Up 1.4%

Shares of NYSE:TGT opened at $124.93 on Thursday. Target has a 52 week low of $83.44 and a 52 week high of $133.10. The company has a debt-to-equity ratio of 0.87, a quick ratio of 0.30 and a current ratio of 0.93. The company has a market capitalization of $56.74 billion, a PE ratio of 16.50, a PEG ratio of 2.41 and a beta of 1.00. The company has a 50 day moving average price of $124.14 and a two-hundred day moving average price of $111.70.

Target (NYSE:TGT - Get Free Report) last issued its earnings results on Wednesday, May 20th. The retailer reported $1.71 EPS for the quarter, beating the consensus estimate of $1.47 by $0.24. The company had revenue of $25.44 billion during the quarter, compared to analysts' expectations of $24.66 billion. Target had a net margin of 3.24% and a return on equity of 22.92%. The business's revenue for the quarter was up 6.7% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.30 EPS. Target has set its FY 2026 guidance at 7.500-8.500 EPS.

Target Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, June 1st. Shareholders of record on Wednesday, May 13th were issued a dividend of $1.14 per share. This represents a $4.56 dividend on an annualized basis and a yield of 3.6%. The ex-dividend date was Wednesday, May 13th. Target's dividend payout ratio is 60.24%.

Insider Transactions at Target

In other Target news, insider Cara A. Sylvester sold 10,000 shares of the stock in a transaction dated Friday, May 29th. The stock was sold at an average price of $125.89, for a total transaction of $1,258,900.00. Following the completion of the transaction, the insider owned 45,930 shares in the company, valued at approximately $5,782,127.70. This represents a 17.88% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CAO Matthew A. Liegel sold 2,053 shares of the stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $117.19, for a total value of $240,591.07. Following the transaction, the chief accounting officer owned 12,143 shares of the company's stock, valued at approximately $1,423,038.17. This trade represents a 14.46% 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.

Hedge Funds Weigh In On Target

A number of large investors have recently added to or reduced their stakes in TGT. Parallel Advisors LLC grew its holdings in shares of Target by 7.0% in the 1st quarter. Parallel Advisors LLC now owns 7,823 shares of the retailer's stock valued at $948,000 after acquiring an additional 513 shares in the last quarter. First Nebraska Trust Co acquired a new stake in Target during the first quarter worth approximately $435,000. Flagship Wealth Advisors LLC lifted its position in Target by 527.5% during the first quarter. Flagship Wealth Advisors LLC now owns 753 shares of the retailer's stock worth $91,000 after acquiring an additional 633 shares during the last quarter. Financial Solutions Advisory Group Inc. acquired a new stake in Target during the first quarter worth approximately $202,000. Finally, Asset Dedication LLC lifted its position in Target by 248.5% during the first quarter. Asset Dedication LLC now owns 5,206 shares of the retailer's stock worth $631,000 after acquiring an additional 3,712 shares during the last quarter. Institutional investors own 79.73% of the company's stock.

Target News Summary

Here are the key news stories impacting Target this week:

• Positive Sentiment: Zacks Research raised Target’s earnings estimates for FY2027, FY2028 and FY2029, and also increased Q2 2027, Q3 2027 and Q2 2028 EPS forecasts, signaling stronger long-term profit expectations for the retailer.
• Neutral Sentiment: Target announced “Target Circle Deal Days” with discounts of up to 45% on back-to-school, summer and college essentials, which could help drive traffic and sales but is more of a promotional update than a clear earnings catalyst. New, Deep Savings for Back-to-School and Summer: Target Circle Deal Days Delivers Value with Style
• Neutral Sentiment: An article comparing Target with Walmart highlighted Target as a potential turnaround and long-term value play, but it did not include new company-specific financial data. Walmart vs. Target: Which Retailer Is the Better Long-Term Hold?
• Negative Sentiment: Target insider Cara Sylvester sold 10,000 shares, which can sometimes weigh on investor sentiment even if it does not necessarily reflect the company’s fundamentals. Target NYSE: TGT Insider Cara Sylvester Sells 10,000 Shares of Stock
• Negative Sentiment: Zacks also trimmed one near-term estimate, cutting Q4 2028 EPS slightly, which suggests some caution around longer-dated earnings expectations.

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.

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