Goldman Sachs Maintains Buy on Target, Raises Price Target to $194
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 06 2024
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Source: Benzinga
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Analyst Views on TGT
Wall Street analysts forecast TGT stock price to fall
26 Analyst Rating
8 Buy
14 Hold
4 Sell
Hold
Current: 130.740
Low
80.00
Averages
98.83
High
126.00
Current: 130.740
Low
80.00
Averages
98.83
High
126.00
About TGT
Target Corporation is a general merchandise retailer selling products to its guests through its stores and digital channels. The Company offers customers, referred to as guests, differentiated merchandise and everyday essentials at discounted prices. The majority of its stores offer a wide assortment of general merchandise and groceries. Its merchandise categories include apparel and accessories, beauty, food and beverage, hardlines, home furnishings and decor, household essentials, and other merchandise sales. Most of its stores are larger than over 170,000 square feet, offer a variety of general merchandise and a full line of groceries comparable to traditional supermarkets. Its digital channels include merchandise assortment, including many items found in its stores, along with a complementary assortment sold by the Company and third parties through our Target Plus digital marketplace. Its brands include A New Day, All in Motion, Art Class, Auden, Ava & Viv, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Target Shareholder Support Hits Record Low Amid Leadership Criticism
- Declining Shareholder Support: At the recent annual meeting, Target's former CEO and current executive chairman Brian Cornell received only 87.2% support, a 4% drop from last year and significantly below the S&P 500 average of 96.6%, indicating growing investor dissatisfaction with leadership.
- Management Transition Backlash: After stepping down as CEO in February 2023, Cornell's transition to executive chair has been criticized, as despite achieving over 44% sales growth during his tenure, the company has faced declining profits and market share losses, resulting in a nearly 50% drop in stock price since its 2021 peak.
- Investor Opposition: Major public pension funds from Florida and New York voted against Cornell, citing “poor long-term performance,” highlighting significant investor discontent with Target's management, particularly regarding brand reputation and workforce management issues.
- Uncertain Future Outlook: Although Target reported a 5.6% increase in comparable sales in the first fiscal quarter, suggesting early signs of recovery, the CFO acknowledged that spending may decline due to reduced tax refunds, leaving investor confidence in management still fragile.
See More
Target Board Support Declines Significantly Amid Criticism
- Declining Shareholder Support: Brian Cornell, former CEO and current executive chairman of Target, received only 87.2% support during the annual meeting, a 4% drop from last year and significantly below his historical average of 95% and the S&P 500's 96.6%, indicating growing investor dissatisfaction with his leadership.
- Poor Performance: Under Cornell's tenure, Target has faced three consecutive years of declining sales and a 50% drop in share price, leading to diminished investor confidence in the company's strategic direction, particularly amid fierce competition from rivals.
- Pressure for Management Change: While Cornell was re-elected to the board, investor concerns about his continued chairmanship have intensified, with many viewing his retention as a “reward for failure” and calling for a complete overhaul of the management team overseeing the company's struggles.
- Increased Opposition from Investors: Major investors, including public pension funds from Florida and New York, have begun to vote against Cornell, citing poor management and its negative impact on brand and shareholder value, reflecting a strong pushback against Target's leadership.
See More
Amazon's Prime Day Tests U.S. Consumer Spending Power
- Consumer Spending Test: Amazon's Prime Day, running from June 23 to 26, is strategically timed to capture spending on summer travel and back-to-school needs, reflecting consumer spending power amid inflation and rising gas prices.
- Shift in Promotion Focus: This year's event emphasizes essential items like groceries and household goods rather than luxury purchases, highlighting the urgent need for discounts among lower-income families, as noted by CEO William Stern, who stated that consumers are waiting for these deals to buy basic necessities.
- Sales Growth Expectations: Bank of America projects $21.6 billion in goods sold during the event, a 5% increase over 2025, while Adobe Analytics anticipates average discounts of 23% on children's apparel, lunch boxes, and backpacks, indicating a strong focus on value among consumers.
- Intensified Competition: Despite Walmart and Target running concurrent promotions, Amazon is expected to capture over 60% of sales during the four days, with analysts noting that consumers will gravitate towards the lowest-priced options, intensifying price competition in the retail sector.
See More
Target Commits $2 Billion to Enhance Customer Experience Amid Challenges
- Customer Experience Investment: Target has announced a commitment of over $2 billion over the next few years, including $1 billion specifically aimed at enhancing customer experience, which is intended to improve store environments, inventory management, and operational processes, thereby increasing customer satisfaction and attracting more shoppers.
- Employee Training Enhancement: As of Q1 2026, Target has provided guest experience training to over 300,000 team members, aiming to improve service quality through clear behavioral standards and accountability, with early data indicating improvements in customer satisfaction metrics.
- Market Competition Strategy: In response to pressures from competitors like Walmart, Amazon, and Costco, Target is focusing on enhancing customer experience rather than solely competing on price, demonstrating strategic flexibility in a challenging retail environment.
- Long-Term Profit Potential: Despite the intense competition in the current retail landscape, Target's investment is viewed as a growth investment, expected to drive sales growth and market share increase by improving shopping experiences, reflecting management's confidence in future development.
See More
U.S. Food Companies Navigate Changes to SNAP Policies
- Impact of SNAP Policies: As of May, the USDA has approved food restriction waivers in 23 states affecting about one-third of SNAP participants, with estimates suggesting a potential $830 million drop in food and beverage sales this year, compelling companies to reassess their product lines to adapt to shifting consumer spending.
- Consumer Spending Pressure: Kroger CEO Greg Foran highlighted that customers are under financial pressure due to reduced SNAP benefits and rising gas prices, leading to more cautious shopping behavior, indicating that changes in market demand could significantly influence food companies' sales strategies.
- Legislative Push for Healthy Eating: Iowa has become the first state to codify elements of the
See More
Costco Stock Valuation Too High, Investors Should Watch
- High Valuation: Costco's price-to-earnings ratio stands at 49, significantly higher than competitors like Walmart and Target, and it hasn't dipped below 25 since 2017, indicating substantial valuation risk for investors.
- Revenue Growth: For the first nine months of fiscal 2026, Costco reported total revenue of $207 billion, a 10% year-over-year increase, with net income reaching $6.2 billion, up 13%, yet this growth does not justify its high P/E ratio.
- PEG Ratio: Costco's PEG ratio is twice that of Walmart's, and while revenue and earnings growth have slightly accelerated, this does not validate its elevated valuation, raising further concerns among investors.
- Flat Market Performance: Since the beginning of 2025, Costco's stock has remained flat, with a pullback since mid-May, prompting investors to carefully consider the risks of entering at such a high valuation.
See More
Target Shareholder Support Hits Record Low Amid Leadership Criticism
- Declining Shareholder Support: At the recent annual meeting, Target's former CEO and current executive chairman Brian Cornell received only 87.2% support, a 4% drop from last year and significantly below the S&P 500 average of 96.6%, indicating growing investor dissatisfaction with leadership.
- Management Transition Backlash: After stepping down as CEO in February 2023, Cornell's transition to executive chair has been criticized, as despite achieving over 44% sales growth during his tenure, the company has faced declining profits and market share losses, resulting in a nearly 50% drop in stock price since its 2021 peak.
- Investor Opposition: Major public pension funds from Florida and New York voted against Cornell, citing “poor long-term performance,” highlighting significant investor discontent with Target's management, particularly regarding brand reputation and workforce management issues.
- Uncertain Future Outlook: Although Target reported a 5.6% increase in comparable sales in the first fiscal quarter, suggesting early signs of recovery, the CFO acknowledged that spending may decline due to reduced tax refunds, leaving investor confidence in management still fragile.
See More
Target Board Support Declines Significantly Amid Criticism
- Declining Shareholder Support: Brian Cornell, former CEO and current executive chairman of Target, received only 87.2% support during the annual meeting, a 4% drop from last year and significantly below his historical average of 95% and the S&P 500's 96.6%, indicating growing investor dissatisfaction with his leadership.
- Poor Performance: Under Cornell's tenure, Target has faced three consecutive years of declining sales and a 50% drop in share price, leading to diminished investor confidence in the company's strategic direction, particularly amid fierce competition from rivals.
- Pressure for Management Change: While Cornell was re-elected to the board, investor concerns about his continued chairmanship have intensified, with many viewing his retention as a “reward for failure” and calling for a complete overhaul of the management team overseeing the company's struggles.
- Increased Opposition from Investors: Major investors, including public pension funds from Florida and New York, have begun to vote against Cornell, citing poor management and its negative impact on brand and shareholder value, reflecting a strong pushback against Target's leadership.
See More
Amazon's Prime Day Tests U.S. Consumer Spending Power
- Consumer Spending Test: Amazon's Prime Day, running from June 23 to 26, is strategically timed to capture spending on summer travel and back-to-school needs, reflecting consumer spending power amid inflation and rising gas prices.
- Shift in Promotion Focus: This year's event emphasizes essential items like groceries and household goods rather than luxury purchases, highlighting the urgent need for discounts among lower-income families, as noted by CEO William Stern, who stated that consumers are waiting for these deals to buy basic necessities.
- Sales Growth Expectations: Bank of America projects $21.6 billion in goods sold during the event, a 5% increase over 2025, while Adobe Analytics anticipates average discounts of 23% on children's apparel, lunch boxes, and backpacks, indicating a strong focus on value among consumers.
- Intensified Competition: Despite Walmart and Target running concurrent promotions, Amazon is expected to capture over 60% of sales during the four days, with analysts noting that consumers will gravitate towards the lowest-priced options, intensifying price competition in the retail sector.
See More
Target Commits $2 Billion to Enhance Customer Experience Amid Challenges
- Customer Experience Investment: Target has announced a commitment of over $2 billion over the next few years, including $1 billion specifically aimed at enhancing customer experience, which is intended to improve store environments, inventory management, and operational processes, thereby increasing customer satisfaction and attracting more shoppers.
- Employee Training Enhancement: As of Q1 2026, Target has provided guest experience training to over 300,000 team members, aiming to improve service quality through clear behavioral standards and accountability, with early data indicating improvements in customer satisfaction metrics.
- Market Competition Strategy: In response to pressures from competitors like Walmart, Amazon, and Costco, Target is focusing on enhancing customer experience rather than solely competing on price, demonstrating strategic flexibility in a challenging retail environment.
- Long-Term Profit Potential: Despite the intense competition in the current retail landscape, Target's investment is viewed as a growth investment, expected to drive sales growth and market share increase by improving shopping experiences, reflecting management's confidence in future development.
See More
U.S. Food Companies Navigate Changes to SNAP Policies
- Impact of SNAP Policies: As of May, the USDA has approved food restriction waivers in 23 states affecting about one-third of SNAP participants, with estimates suggesting a potential $830 million drop in food and beverage sales this year, compelling companies to reassess their product lines to adapt to shifting consumer spending.
- Consumer Spending Pressure: Kroger CEO Greg Foran highlighted that customers are under financial pressure due to reduced SNAP benefits and rising gas prices, leading to more cautious shopping behavior, indicating that changes in market demand could significantly influence food companies' sales strategies.
- Legislative Push for Healthy Eating: Iowa has become the first state to codify elements of the
See More
Costco Stock Valuation Too High, Investors Should Watch
- High Valuation: Costco's price-to-earnings ratio stands at 49, significantly higher than competitors like Walmart and Target, and it hasn't dipped below 25 since 2017, indicating substantial valuation risk for investors.
- Revenue Growth: For the first nine months of fiscal 2026, Costco reported total revenue of $207 billion, a 10% year-over-year increase, with net income reaching $6.2 billion, up 13%, yet this growth does not justify its high P/E ratio.
- PEG Ratio: Costco's PEG ratio is twice that of Walmart's, and while revenue and earnings growth have slightly accelerated, this does not validate its elevated valuation, raising further concerns among investors.
- Flat Market Performance: Since the beginning of 2025, Costco's stock has remained flat, with a pullback since mid-May, prompting investors to carefully consider the risks of entering at such a high valuation.
See More
