"RBC Capital analyst Steven Shemesh raised the firm's price target on Target ( NYSE:TGT | TGT Price Prediction) stock to $132 from $130, maintaining an Outperform rating ahead of next week's Q1 FY2026 earnings report. The firm stated it is "cautiously optimistic that turnaround efforts are beginning to resonate with the consumer.""
"Shemesh's "resonating with the consumer" phrase reflects momentum building since late last year. Target closed Q4 FY2026 with adjusted EPS of $2.44, beating consensus of $2.16 by 13%, while gross margin expanded 40 basis points to 27%. CEO Michael Fiddelke also noted that "Target saw a healthy, positive sales increase in February, serving as an important milestone on our path back to growth this year.""
"RBC appears to be leaning into that signal, plus growth in non-merchandise revenue, which rose more than 25% on Roundel ads, marketplace, and membership. Target operates nearly 2,000 stores across the U.S., with brands spanning Target Circle, Target Circle 360, Roundel, and Drive Up. The company carries a market capitalization near $57.2 billion and just declared its 235th consecutive quarterly dividend."
"The catch with this analyst upgrade is that Target stock has already run hard. Shares were up roughly 32% year-to-date as of last week, so the turnaround thesis may be partly priced in. Target trades at a P/E ratio of 16x with a 3% dividend yield and a 3.47% dividend yield. Consensus sits at $126.03, so RBC's $132 target carries the firm above the Street a"
RBC Capital raised its Target price target to $132 from $130 while keeping an Outperform rating ahead of the next Q1 FY2026 earnings report. The firm expressed cautious optimism that turnaround efforts are beginning to resonate with consumers. Momentum is tied to results from the prior quarter, including adjusted EPS of $2.44 that beat consensus by 13% and gross margin expansion of 40 basis points to 27%. Management cited a healthy positive sales increase in February and growth in non-merchandise revenue driven by Roundel ads, marketplace, and membership. Target operates nearly 2,000 stores, declared its 235th consecutive quarterly dividend, and guided FY2026 EPS to $7.50 to $8.50 with net sales growth expected in every quarter of 2026.
Read at 24/7 Wall St.
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