Target Corp (NYSE:TGT) shares are down trading on Thursday, after the company on Tuesday reported its second-quarter results.
See what is happening with TGT stock here.
Here are some key analyst takeaways.
- DA Davidson analyst Michael Baker reaffirmed a Buy rating, while reducing the price target from $125 to $115.
- RBC Capital Markets analyst Steven Shemesh reiterated an Outperform rating, while raising the price target from $104 to $107.
- JPMorgan analyst Christopher Horvers maintained a Neutral rating and price target of $117.
- Telsey Advisory Group analyst Joseph Feldman reiterated a Market Perform rating and price target of $110.
Check out other analyst stock ratings.
DA Davidson: Target's results were not good; they were "less worse than expected," Baker said in a note. The pressure on the stock was triggered more by the CEO change, rather than the core business, he added.
The decision could be the right one, as the new CEO Michael Fiddelke has been with Target for 22 years and was with the company during the last few difficult years, as well as during the years when the company thrived, the analyst stated. Fiddelke's focus will be on merchandising style and design, store experience and using AI to boost the pace of decision making, "make sense to us," he further wrote.
RBC Capital Markets: Target's competitive positioning "has worsened in key areas" and the leadership transition spells an opportunity for the company to address these issues, Shemesh said. "We’re hopeful that the Company announces a reinvestment cycle and re-bases 2026 EPS lower, which in our view would make the story attractive to investors," he wrote.
There could be some resistance to this strategy, since the current CEO, Brian Cornell, will remain with Target as executive chair of the board and the incoming CEO was part of the strategic planning over the past few years, the analyst stated. He raised the adjusted earnings estimates for 2025 and 2026 from $6.85 per share to $6.92 per share and from $7.41 per share to $7.67 per share, respectively.
JPMorgan: Target's second-quarter results were broadly in line with expectations, with comps and earnings slightly better, Horvers said. Inventory was up only 2% year-on-year at the end of the second quarter, after ending the first quarter up 11%.
The new CEO is scheduled to take office on Feb. 1, 2026, and is likely to focus on "better execution and higher urgency," the analyst stated. Fiddelke's strategies include "enhancing Target's reputation as an on-trend retailer, providing a more consistent customer experience, and leveraging technology to improve efficiency throughout the business," he further wrote.
Telsey Advisory Group: Target's results were slightly better than the consensus but represented a year-on-year decline, Feldman said. The company's adjusted earnings declined by 20.2% year-on-year to $2.05 per share and operating margin contracted by 120 basis points to 5.2%, he added.
"Target reiterated its wide 2025 adjusted EPS guidance of $7-$9," the analyst wrote. The announcement of Fiddelke as the new CEO was not surprising, since Fiddelke had held several leadership roles, such as COO, at the company, he further stated.
TGT Price Action: Shares of Target had declined by 1.90% to $96.73 at the time of publication on Thursday.
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