Wolfe Research Sets $162 Target After Target’s 29% Q1 Margin and $5B CapEx Plan
TGT•Wolfe Research raised Target’s rating to Outperform, setting a $162 price target implying 24.84% upside based on a $129.77 stock price. Target plans $5 billion FY2026 capital spending, delivered Q1 gross margin improvement to 29% with 10% higher inventory turns and boosted sales growth outlook to 4%.
1. Wolfe Research Upgrade
Wolfe Research upgraded Target to an Outperform rating and assigned a $162 price target implying 24.84% upside from the then stock price of $129.77.
2. Capital Expenditure Plan
Target committed approximately $5 billion in fiscal 2026 capital expenditures to fund new store openings, remodels and enhancements to its supply chain and technology infrastructure.
3. Q1 Financial Performance
In Q1, Target reported a 29% gross margin, over 10% improvement in inventory turns and a roughly 3.6% share price increase following results that beat analyst expectations.
4. Sales Growth Outlook
Management raised its full-year sales growth forecast to around 4% for fiscal 2026, up from an earlier 2% estimate, supporting a 30.7% year-to-date stock gain.
