Analysts Issue Hold Consensus on Target with $103.03 Average Price Objective
Target Corporation has a consensus Hold rating from 34 analysts—10 Buys, 20 Holds and 4 Sells—with a $103.03 average 1-year price objective. BMO Capital cut its price target to $90, Bank of America lowered theirs to $80 and DA Davidson set a $120 target.
1. Analysts’ Consensus Rating and Price Targets
Target has received mixed assessments from 34 leading equity research firms over the past year, with four issuing sell ratings, 20 assigning holds and ten endorsing buys. The average 12-month price objective across these analysts stands at $103.03. Recent firm actions include Zacks Research upgrading Target from “strong sell” to “hold” on December 3, BMO Capital Markets trimming its target from $95 to $90 on November 20, Wolfe Research reaffirming an “underperform” view with an $81 target on December 30, and DA Davidson setting the most bullish forecast of $120 on January 12.
2. Q3 Earnings Performance and 2025 Guidance
In its fiscal third quarter ended November 19, Target reported earnings per share of $1.78, surpassing the consensus estimate of $1.71 by seven cents. Quarterly revenue totaled $25.27 billion, narrowly missing the $25.44 billion analysts had projected and marking a 1.6% year-over-year decline. Net margin came in at 3.58% while return on equity reached 22.74%. For fiscal 2025, the company has guided to earnings per share in the range of $7.00 to $8.00, compared with the street’s current consensus forecast of $8.69.
3. Institutional Ownership Trends
Institutional investors hold approximately 79.7% of Target’s shares. In recent quarters, WFA of San Diego LLC established a new stake valued at $25,000 in Q2, while Raleigh Capital Management increased its position by 63.4% to 263 shares (€26,000) in the same period. Heartwood Wealth Advisors added $27,000 worth of shares in Q3, Investment Research & Advisory Group built a $29,000 position in Q2, and Global Wealth Strategies & Associates expanded its holdings by 192%, acquiring 192 additional shares (€29,000) in Q4.
4. Board Strengthening and Shareholder Payout
On January 22, Target appointed John Hoke III—veteran design leader and former chief innovation officer at a major athletic apparel company—and Steve Bratspies, ex-CEO of a leading apparel brand, to its board to bolster innovation and retail operations expertise. Concurrently, the company declared a quarterly dividend of $1.14 per share, payable March 1 to holders of record on February 11, representing a $4.56 annualized payout and a 4.3% yield, with a 55.3% payout ratio.