The stock of Target (TGT) is down 6% despite the discount retailer beating Wall Street’s expectations with its latest financial results and raising its forward guidance.
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In late afternoon trading on May 20, TGT stock was sliding lower despite Wall Street analysts praising the company’s latest print. At one point the company’s share price was down nearly 10% on the day. The decline comes after Target’s stock had risen 20% this year heading into the first-quarter report.
The Minneapolis-based company announced earnings per share (EPS) of $1.71, which surpassed the $1.46 consensus expectation of analysts. Revenue in this year’s first quarter totaled $25.44 billion, which topped the $24.64 billion forecast on Wall Street.
Target’s store count. Source: The Fly
Target’s Same-Store Sales
Notably, Target’s same-store sales rose 5.6% in the latest quarter, the first positive same-store sales number in five quarters. Management said that consumers are turning to Target for deals amid high gas prices and stubborn inflation that has elevated prices.
Looking ahead, Target raised its full-year revenue outlook, saying it now expects sales growth of 4% compared to 2025, an increase of two percentage points from its previous outlook. The company also expects its earnings per share to come in near the high end of its previous guidance range of $7.50 to $8.50. Wall Street was expecting earnings of $8.14 per share from Target this year.
Is TGT Stock a Buy?
Target’s stock has a consensus Moderate Buy rating among 25 analysts. That rating is based on 11 Buy, 12 Hold, and two Sell recommendations issued in the last three months. The average TGT price target of $130.71 implies 8% upside from current levels. These ratings could change after the company’s financial results.
