Goldman Sachs analyst Kate McShane maintained a Hold rating on Target yesterday and set a price target of $90.00.
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Kate McShane’s rating is based on a combination of factors, including the current sentiment and performance trends of Target. While there are some early signs of improvement in consumer perception and sentiment, such as better Twitter sentiment and net favorability scores, other indicators like app downloads and traffic data remain negative. Additionally, despite some improvements in customer perception metrics, the key performance indicators have not shown consistent month-over-month improvement, and the net promoter index for less frequent customers is still low.
Furthermore, while Target has adjusted its fiscal year 2025 earnings guidance, there is a need for more substantial improvements in comparable sales trends and operational adjustments to become more optimistic. The upcoming second-quarter earnings are expected to show a slight decline in same-store sales and a modest operating margin, which aligns closely with consensus estimates. Given these mixed signals and the current stock price being above the 12-month price target, McShane has opted for a Hold rating, suggesting a cautious approach until more consistent positive trends emerge.
TGT’s price has also changed moderately for the past six months – from $135.770 to $106.540, which is a -21.53% drop .