Target Corp (NYSE:TGT) beat analyst estimates in the second quarter and the stock is trading at a multi-year high. However, analysts are questioning whether more gains lie ahead or whether the market has already priced in the rebound.
The Target Analysts
- Guggenheim analyst John Heinbockel maintained a Buy rating on Target stock and raised the price target from $150 to $175.
- JPMorgan analyst Christopher Horvers maintained a Neutral rating and lowered the price target from $159 to $157.
Guggenheim on Target Stock
The doubt of a turnaround is gone, but questions on valuation remain, Heinbockel said in a new investor note.
The early stages of the highly contrarian turnaround story, for which we were there, have now run their course, with valuation more consistent with a secular grower, thereby limiting near-term upside potential, Heinbockel explained.
The analyst highlights that Target stock is up 60% since late 2025, outpacing the S&P 500’s 13% gain over the same period.
"We remain believers in the uniquely positioned brand."
Heinbockel said there is still some "work in progress," but Target is likely a high-single-digit growth company going forward.
JPMorgan on Target Stock
After proving a turnaround, future growth and "visibility on 2027" becomes a focus for Target stock, Horvers said in a new investor note.
"The evidence of TGT’s merchandising improvements and investments to recapture the customer experience is strong," Horvers said.
The analyst said Target is benefiting from tailwinds and is seeing consumer strength, with general merchandise driving increased traffic to stores.
Horvers is cautious on margins, increased investments, and comparable sales going forward, leading to a Neutral rating.
Price Action
Target is up 0.2% to $159.35 on Thursday versus a 52-week trading range of $83.44 to $161.98. Share prices also hit new 52-week highs on Wednesday. Target shares are up 58.5% year-to-date in 2026.
Image by Ken Wolter via Shutterstock
Login to comment