Target’s Price Target Reduced to $80 Amid Analyst Downgrades

Target Corporation (NYSE:TGT) has seen its price target cut to $80.00 by analysts at Sanford C. Bernstein, down from a previous estimate of $87.00. This adjustment, detailed in a note to investors, reflects the brokerage’s current rating of “underperform” for the retailer’s stock. The new target suggests a potential downside of 6.91% from Target’s current trading price.

Multiple brokerages have recently reassessed their positions on Target. On November 4, Zacks Research downgraded the stock from a “hold” rating to a “strong sell.” Earlier in the month, Evercore ISI lowered its price target from $100.00 to $95.00, maintaining an “in-line” rating. BTIG Research, which began coverage on October 14, assigned a “neutral” rating, while Guggenheim reaffirmed a “buy” rating with a target of $115.00. Lastly, Wolfe Research initiated coverage with an “underperform” rating and the same $80.00 price target as Sanford C. Bernstein.

As per data from MarketBeat.com, analysts have mixed feelings about Target’s stock. Out of 37 analysts, ten have rated it as a “buy,” twenty-two have opted for a “hold,” and five have rated it as a “sell.” The consensus target price stands at $106.21.

Recent Earnings and Performance Insights

Target’s stock price fell by 2.9% following the company’s latest earnings report released on November 19. The retailer reported earnings per share (EPS) of $1.78, surpassing analysts’ expectations of $1.71 by $0.07. Revenue for the quarter reached $25.28 billion, which fell short of the anticipated $25.44 billion. Year-on-year, Target’s revenue decreased by 1.6%, with the company posting an EPS of $1.85 during the same quarter last year. The firm has provided guidance for fiscal year 2025, projecting an EPS range of $7.00 to $8.00, while analysts forecast an EPS of $8.69 for the current year.

Institutional Investment Trends

In recent months, there has been notable activity among institutional investors regarding Target shares. Charles Schwab Investment Management Inc. significantly increased its stake by 407.8% in the first quarter, owning 15,970,414 shares valued at approximately $1.67 billion after acquiring an additional 12,825,586 shares. Similarly, Vanguard Group Inc. boosted its position by 14.7% in the second quarter, now holding 51,444,338 shares worth around $5.07 billion.

Other institutional players have also made sizable investments, with Kingstone Capital Partners Texas LLC and Norges Bank reporting new stakes valued at approximately $595.8 million and $578.0 million, respectively. Additionally, Pacer Advisors Inc. raised its stake by an impressive 1,364.3% during the first quarter, now owning 3,289,692 shares valued at about $343.3 million. Overall, institutional investors now control approximately 79.73% of Target’s stock.

Target Corporation operates as a general merchandise retailer in the United States, offering a wide range of products from apparel to cleaning supplies. Recent analyst downgrades and mixed earnings performance indicate a cautious outlook for the retailer as it navigates market challenges amid shifting consumer behavior.