Zacks Research Has Pessimistic Outlook of Target Q1 Earnings

Key Points

• Zacks Research cut its Q1 2027 EPS estimate for Target to $1.31 (from $1.48) and maintains a Hold rating, lowering its FY2027 EPS view to $7.98 versus a $8.69 consensus.
• Target recently reported $2.44 EPS, beating estimates, but revenue of $30.45 billion slightly missed expectations and was down 1.5% year‑over‑year, highlighting mixed operational performance.
• The company announced a quarterly dividend of $1.14 per share (about a 3.9% yield) amid mixed analyst views—consensus rating is Hold with a consensus target price near $116.45.

Target Corporation (NYSE:TGT - Free Report) - Analysts at Zacks Research dropped their Q1 2027 EPS estimates for Target in a research report issued to clients and investors on Friday, March 13th. Zacks Research analyst Team now forecasts that the retailer will post earnings per share of $1.31 for the quarter, down from their prior estimate of $1.48. Zacks Research has a "Hold" rating on the stock. The consensus estimate for Target's current full-year earnings is $8.69 per share. Zacks Research also issued estimates for Target's Q2 2027 earnings at $2.18 EPS, Q3 2027 earnings at $1.89 EPS, FY2027 earnings at $7.98 EPS, Q1 2028 earnings at $1.44 EPS, Q2 2028 earnings at $2.32 EPS, Q3 2028 earnings at $2.00 EPS, FY2028 earnings at $8.50 EPS and FY2029 earnings at $9.15 EPS.

Target (NYSE:TGT - Get Free Report) last issued its earnings results on Tuesday, March 3rd. The retailer reported $2.44 EPS for the quarter, beating the consensus estimate of $2.16 by $0.28. The company had revenue of $30.45 billion during the quarter, compared to analysts' expectations of $30.52 billion. Target had a net margin of 3.54% and a return on equity of 22.25%. The business's revenue for the quarter was down 1.5% compared to the same quarter last year. During the same quarter in the previous year, the company posted $2.41 EPS. Target has set its Q1 2026 guidance at 1.300- EPS and its FY 2026 guidance at 7.500-8.500 EPS.

A number of other brokerages have also recently issued reports on TGT. DA Davidson raised their target price on Target from $120.00 to $140.00 and gave the stock a "buy" rating in a report on Monday, March 9th. Truist Financial upped their price target on Target from $90.00 to $121.00 and gave the company a "hold" rating in a research note on Tuesday, March 3rd. Guggenheim increased their price target on shares of Target from $125.00 to $130.00 and gave the company a "buy" rating in a research report on Wednesday, March 4th. Bank of America initiated coverage on shares of Target in a research note on Friday, February 27th. They set an "underperform" rating and a $103.00 price objective on the stock. Finally, Evercore set a $105.00 price objective on shares of Target in a report on Tuesday, February 17th. Eleven research analysts have rated the stock with a Buy rating, twenty have assigned a Hold rating and three have issued a Sell rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $116.45.

Target Trading Up 1.4%

NYSE TGT opened at $117.35 on Monday. The stock has a 50-day simple moving average of $112.03 and a 200 day simple moving average of $99.01. The company has a market capitalization of $53.14 billion, a PE ratio of 14.43, a P/E/G ratio of 5.02 and a beta of 1.12. The company has a current ratio of 0.94, a quick ratio of 0.36 and a debt-to-equity ratio of 0.89. Target has a 12 month low of $83.44 and a 12 month high of $126.00.

Target Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, June 1st. Stockholders of record on Wednesday, May 13th will be issued a dividend of $1.14 per share. This represents a $4.56 annualized dividend and a dividend yield of 3.9%. The ex-dividend date is Wednesday, May 13th. Target's payout ratio is 56.09%.

Hedge Funds Weigh In On Target

Several institutional investors and hedge funds have recently modified their holdings of the business. World Investment Advisors boosted its holdings in shares of Target by 80.2% in the fourth quarter. World Investment Advisors now owns 12,726 shares of the retailer's stock valued at $1,244,000 after buying an additional 5,665 shares during the period. Advisortrust Partners LLC acquired a new stake in shares of Target during the fourth quarter worth $4,290,000. PeakShares LLC acquired a new stake in shares of Target during the fourth quarter worth $141,000. Union Savings Bank bought a new stake in Target in the 4th quarter valued at $134,000. Finally, Hsbc Holdings PLC lifted its position in Target by 5.2% in the 4th quarter. Hsbc Holdings PLC now owns 1,735,323 shares of the retailer's stock valued at $169,654,000 after acquiring an additional 85,585 shares in the last quarter. 79.73% of the stock is currently owned by institutional investors and hedge funds.

More Target News

Here are the key news stories impacting Target this week:

• Positive Sentiment: New CEO Michael Fiddelke is cutting prices on roughly 3,000 apparel, home and daily‑essentials items to drive traffic and regain share — a clear, market‑visible action intended to boost comps and curb share loss to discount rivals. Target Accelerates Growth Plan With Price Cuts
• Positive Sentiment: UBS highlights Target’s commitment to a self‑funded turnaround, noting management plans to deploy roughly $2 billion in 2026 to execute price/mix, inventory and marketing initiatives — a capital commitment that suggests management confidence and could reassure investors about execution. UBS: Target investing $2 billion to execute turnaround in 2026
• Positive Sentiment: DA Davidson raised its price target to $140 (maintaining a Buy), which can lift sentiment and provide cover for momentum buying as investors re‑rate the stock on the turnaround thesis. DA Davidson Raises Target (TGT) PT to $140
• Neutral Sentiment: Coverage frames the moves as a needed response to lost share versus discount competitors; the narrative supports a plausible recovery but execution risk remains high — context piece on the strategy and competitive positioning. Target's Been Falling Behind Discount Retail Rivals. Its New CEO Wants to Change That.
• Neutral Sentiment: Several market writeups and bullish theses debate valuation (TGT’s P/E and forward estimates) and whether the turnaround will restore prior margins — useful background but outcome‑dependent. Is Target Corporation (TGT) A Good Stock To Buy Now?
• Negative Sentiment: Reuters and others caution that past price cuts produced only short‑lived sales bumps, raising execution risk that current cuts may not sustainably grow traffic or margin. New Target CEO slashes prices. Previous cuts offered short-lived sales boost.
• Negative Sentiment: Ongoing consumer protest over prior DEI decisions remains active in some locales, a reputational/traffic risk that could blunt the effectiveness of promotional moves. Boycott of Target over DEI cuts still active, local organizers say

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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