Target (TGT) AI Stock Analysis

• Market Cap: $42.84B
• Dividend Yield: 4.66%
• Average Volume (3M): 7.21M
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.64
• Revenue Growth: -2.16%
• EPS Growth: -12.66%
• Country: US
• Employees: 440,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Discount Stores
• EPS (TTM): 1.78
• Shares Outstanding: 452,806,430
• 10 Day Avg. Volume: 5,724,998
• 30 Day Avg. Volume: 7,212,470
• PEG Ratio: -19.87
• Price to Book (P/B): 4.33
• Price to Sales (P/S): 0.60
• P/FCF Ratio: 14.19
• Enterprise Value/Market Cap: 1.37
• Enterprise Value/Revenue: 0.56
• Enterprise Value/Gross Profit: 2.15
• Enterprise Value/Ebitda: 6.99
• 1Y Price Target: $98.39
• Price Target Upside: 1.46% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 24
• EPS Forecast (FY): 7.28
• Revenue Forecast (FY): $104.76B

• Rating: 70 Neutral
• Price Target: $100.00 ▲(3.12% Upside)

Target's overall stock score is driven by stable financial performance and attractive valuation. However, technical analysis shows mixed signals, and the earnings call highlights both growth opportunities and challenges. The company's focus on digital expansion and operational efficiency provides a solid foundation for future growth, despite current market pressures.

Positive Factors

Digital Sales Growth

Target's strong growth in digital sales and same-day delivery services indicates a robust adaptation to e-commerce trends, enhancing its competitive position in the retail market.

AI-Powered Shopping

Integrating AI into the shopping experience can increase customer engagement and streamline the purchasing process, potentially boosting sales and customer satisfaction.

Cash Flow Management

Strong cash flow management provides Target with financial flexibility to invest in growth initiatives and weather economic downturns, supporting long-term stability.

Negative Factors

Decline in Comparable Sales

A decline in comparable sales, particularly in discretionary categories, suggests challenges in maintaining sales momentum, which could impact long-term revenue growth.

Restructuring and Job Cuts

Restructuring and job cuts may indicate operational challenges and could affect employee morale, potentially impacting productivity and customer service quality.

Consumer Sentiment

Low consumer confidence can lead to reduced spending, particularly in discretionary areas, posing a risk to Target's sales and profitability in the near to medium term.

Target Business Overview & Revenue Model

Company Description

Target Corporation operates as a general merchandise retailer in the United States. The company offers food assortments, including perishables, dry grocery, dairy, and frozen items; apparel, accessories, home décor products, electronics, toys, seasonal offerings, food, and other merchandise; and beauty and household essentials. It also provides in-store amenities, such as Target Café, Target Optical, Starbucks, and other food service offerings. The company sells its products through its stores; and digital channels, including Target.com. As of March 09, 2022, the company operated approximately 2,000 stores. Target Corporation was incorporated in 1902 and is headquartered in Minneapolis, Minnesota.

How the Company Makes Money

Target generates revenue primarily through the sale of products across various categories, including apparel, home goods, electronics, and groceries. The company operates a mix of physical stores and a robust e-commerce platform, which contributes significantly to its overall sales. Key revenue streams include in-store purchases, online sales, and exclusive product offerings through partnerships with various brands. Additionally, Target has developed its own private label brands, which have higher profit margins than national brands. The company also engages in promotional activities and loyalty programs that encourage repeat purchases. Strategic partnerships with suppliers and collaborations with designers enhance Target's product offerings and attract a wider customer base, further driving sales. Seasonal promotions, such as back-to-school and holiday campaigns, are critical in boosting revenue during peak shopping periods.

Target Financial Statement Overview

Summary

Target demonstrates stable profitability with a solid gross profit margin of 25.47% and a net profit margin of 3.84%. Despite a decline in revenue growth, the company maintains efficient cash flow management and a strong return on equity of 26.73%, indicating effective use of shareholder funds.

Income Statement

Target's income statement shows a decline in revenue growth with a negative rate of -0.256% TTM, indicating challenges in maintaining sales momentum. However, the company maintains a solid gross profit margin of 25.47% and a net profit margin of 3.84%, reflecting stable profitability. The EBIT and EBITDA margins are also healthy at 5.40% and 8.29% respectively, suggesting efficient operational management despite revenue pressures.

Balance Sheet

The balance sheet reveals a debt-to-equity ratio of 1.29, indicating moderate leverage. Return on equity is strong at 26.73%, showcasing effective use of shareholder funds to generate profits. The equity ratio stands at 25.84%, suggesting a balanced capital structure with a reasonable level of equity financing.

Cash Flow

Target's cash flow statement highlights a robust free cash flow growth rate of 15.04% TTM, demonstrating strong cash generation capabilities. The operating cash flow to net income ratio is 0.36, and the free cash flow to net income ratio is 0.73, indicating efficient conversion of profits into cash. This solid cash flow performance supports the company's financial flexibility.

Breakdown	Dec 2025	Dec 2024	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	107.41B	106.57B	109.12B	106.00B	93.56B
Gross Profit	27.26B	27.54B	24.51B	28.70B	25.38B
EBITDA	8.62B	8.68B	6.60B	11.97B	8.50B
Net Income	4.14B	4.09B	2.78B	6.95B	4.37B
Balance Sheet
Total Assets	55.36B	57.77B	53.34B	53.81B	51.25B
Cash, Cash Equivalents and Short-Term Investments	3.81B	4.76B	2.23B	5.91B	8.51B
Total Debt	19.65B	19.88B	19.07B	16.47B	15.11B
Total Liabilities	41.92B	43.10B	42.10B	40.98B	36.81B
Stockholders Equity	13.43B	14.67B	11.23B	12.83B	14.44B
Cash Flow
Free Cash Flow	3.81B	4.48B	-1.51B	5.08B	7.88B
Operating Cash Flow	8.62B	7.37B	4.02B	8.63B	10.53B
Investing Cash Flow	-4.76B	-2.86B	-5.50B	-3.15B	-2.59B
Financing Cash Flow	-2.29B	-3.55B	-2.20B	-8.07B	-2.00B

Target Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 96.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TGT, the sentiment is Positive. The current price of 96.97 is above the 20-day moving average (MA) of 90.39, above the 50-day MA of 90.36, and above the 200-day MA of 94.98, indicating a bullish trend. The MACD of 1.59 indicates Negative momentum. The RSI at 66.94 is Neutral, neither overbought nor oversold. The STOCH value of 90.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TGT.

Target Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WMT	78 Outperform	$902.06B	39.70	24.87%	0.83%	4.34%	17.27%
DG	73 Outperform	$27.63B	21.68	16.45%	1.88%	4.86%	-4.51%
BJ	71 Outperform	$11.82B	20.65	29.24%	―	2.82%	3.77%
TGT	70 Neutral	$42.84B	11.48	25.09%	4.66%	-2.16%	-12.66%
COST	68 Neutral	$388.20B	48.02	30.32%	0.57%	8.17%	9.92%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
DLTR	61 Neutral	$24.71B	―	20.07%	―	-39.27%	-182.36%

Target Corporate Events

Target Enters New 364-Day Credit Agreement

On October 9, 2025, Target Corporation entered into a new 364-Day Credit Agreement with several banks, replacing its previous agreement. This new agreement allows for loans up to $1.0 billion, with a potential increase of $500 million, and includes terms related to interest rates, covenants, and default conditions, impacting Target’s financial operations and flexibility.