For those who might have thought the shadow of diversity, equity and inclusion (DEI) programs was over with the second Trump administration, not so fast. Retail giant Target’s (TGT), who has been suffering the last six weeks under a “Target fast” protest is poised to meet with one of race issues’ biggest names, the Reverend Al Sharpton, to talk. The news was a boon to shareholders, who sent shares up nearly 3% in Thursday afternoon’s trading.
So Brian Cornell will be meeting with Sharpton to go over Target’s decision to pull back on DEI, a move which has met with outrage from some corners, and would likely meet with outrage from other corners if it were ever backtracked. Cornell’s move, however, is likely part of a larger plan to prevent any future boycott actions.
Sharpton is already on record saying that one could be forthcoming, if Target failed to bolster its commitment to “…Black businesses, employees and consumers.” Sharpton noted his position, saying “If an election determines your commitment to fairness then fine, you have a right to withdraw from us, but then, we have a right to withdraw from you.” With reports noting that Target foot traffic has been in decline for 10 weeks since January 27, when Target first announced its plans to pare back DEI operations, Cornell may be looking for a way to keep all his customers happy.
The Babies Aren’t Happy
Meanwhile, Target may have lost one substantial market in babies, and the parents of same. Reports note that Target baby food was recently subject to a recall, as the food was found to contain lead. Several types of baby food had the contamination in question, reports noted: Good & Gather Baby Pea, Zucchini, and the Kale & Thyme Vegetable Puree were all potentially contaminated.
The good news is that the recall is considered a Class II, which means that the products are “…unlikely to cause serious harm, but still have the potential to result in temporary or reversible problems.” Which means if you have these products, it would be a good idea to throw them out. If you have already fed them to an infant, though, the problems that result should be minimal.
Is Target Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on TGT stock based on 12 Buys, 17 Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 42.48% loss in its share price over the past year, the average TGT price target of $135.25 per share implies 42.51% upside potential.
