Target Stock Struggles, Expected Revenue Growth in 2026
Written by Emily J. Thompson, Senior Investment Analyst
Source: Fool
- Inventory Management Issues: Target's stock has struggled due to excessive inventory purchases during the supply chain crisis, and with a P/E ratio of 12, the market seems to have priced in these challenges, indicating a lack of immediate turnaround potential.
- Management Changes: The appointment of new CEO Michael Fiddelke has not alleviated investor concerns regarding the management team, leading to further stock declines and highlighting internal governance issues.
- Future Growth Expectations: Analysts forecast revenue growth for Target in 2026, primarily driven by store redesigns and supply chain investments, which are expected to enhance customer experience and improve market competitiveness.
- Dividend Stability: As a Dividend King with 54 consecutive years of payout increases, Target's current dividend yield of 4.6% significantly exceeds the S&P 500's average of 1.1%, making it attractive to income-seeking investors.
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Analyst Views on TGT
Wall Street analysts forecast TGT stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for TGT is 98.83 USD with a low forecast of 80.00 USD and a high forecast of 126.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
26 Analyst Rating
8 Buy
14 Hold
4 Sell
Hold
Current: 101.740
Low
80.00
Averages
98.83
High
126.00
Current: 101.740
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, everyday essentials and fashionable, differentiated merchandise at discounted prices. The majority of its stores offer a wide assortment of general merchandise and food. Its merchandise categories include apparel and accessories, beauty and household essentials, food and beverage, hardlines, and home furnishings and decor. Most of its stores are larger than 170,000 square feet, offer a variety of general merchandise and a full line of food items comparable to traditional supermarkets. Its digital channels include a wide merchandise and food assortment, including many items found in its stores, along with a complementary assortment sold by the Company and third parties. Its brands include A New Day, Ava & Viv, Cloud Island, Favorite Day, and others. It serves guests at nearly 2,000 stores and at Target.com.
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.
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