Target (TGT) AI Stock Analysis

• Market Cap: $42.83B
• Dividend Yield: 4.6%
• Average Volume (3M): 8.37M
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.71
• Revenue Growth: -1.55%
• EPS Growth: -11.41%
• Country: US
• Employees: 440,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Discount Stores
• EPS (TTM): 2.05
• Shares Outstanding: 454,399,140
• 10 Day Avg. Volume: 6,320,581
• 30 Day Avg. Volume: 8,367,883
• 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: 1.43
• Enterprise Value/Revenue: 0.82
• Enterprise Value/Gross Profit: 3.17
• Enterprise Value/Ebitda: 9.67
• 1Y Price Target: $102.33
• Price Target Upside: 8.56% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 25

• Rating: 78 Outperform
• Price Target: $111.00 ▲(17.76% Upside)

Target's overall stock score reflects strong valuation and technical momentum, supported by solid financial performance. The earnings call highlights strategic growth initiatives, though ongoing challenges in sales and margins temper the outlook.

Positive Factors

Digital Sales Growth

Target's digital sales growth reflects its successful adaptation to e-commerce trends, enhancing its competitive position and customer reach.

CEO Succession Plan

The planned CEO transition ensures leadership continuity and strategic focus, crucial for long-term stability and growth.

Cash Flow Management

Strong cash flow management provides financial flexibility, supporting investments in growth initiatives and operational resilience.

Negative Factors

Revenue Growth Challenges

Declining revenue growth can limit expansion opportunities and affect long-term competitive positioning in the retail market.

Tariff-Related Margin Pressures

Tariff-related costs can erode profitability, impacting margins and potentially leading to higher prices for consumers.

Furniture Tariff Investigation

Potential new tariffs on furniture imports could increase costs for Target, affecting pricing strategies and profit margins.

Target Business Overview & Revenue Model

Company Description

Target Corporation (TGT) is a leading American retail company headquartered in Minneapolis, Minnesota. It operates a chain of discount department stores, offering a wide range of products including clothing, electronics, home goods, groceries, and health and beauty items. Target is known for its focus on providing high-quality products at affordable prices, alongside a strong emphasis on customer service and community engagement. The company also has a growing online presence, enhancing its ability to serve customers through e-commerce and a robust supply chain.

How the Company Makes Money

Target generates revenue primarily through the sale of merchandise across its stores and online platforms. The company operates in several key revenue streams, including its core retail operations, which consist of selling a variety of products in categories such as apparel, home essentials, electronics, and more. In addition to in-store sales, Target has a significant e-commerce business, which has grown in importance, particularly in recent years. Target also benefits from its private label brands, which typically offer higher margins compared to national brands. Furthermore, the company engages in partnerships with various brands and vendors to enhance its product offerings and attract a wider customer base. Target's loyalty program, Circle, encourages repeat purchases and customer retention, contributing to its overall sales growth.

Target Financial Statement Overview

Summary

Target's financial performance is solid with strong profitability and cash flow management, despite challenges in revenue growth. The balance sheet is stable but could benefit from a stronger equity position.

Income Statement

Target's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate, which is a concern. However, the company maintains a healthy gross profit margin of 25.7% and a net profit margin of 3.95%. The EBIT and EBITDA margins are stable, reflecting operational efficiency. Overall, while revenue growth is a challenge, profitability remains solid.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 1.27, indicating manageable leverage. Return on equity is strong at 28.6%, showcasing effective use of shareholder funds. However, the equity ratio is relatively low, suggesting a higher reliance on debt financing. The balance sheet is stable but could benefit from a stronger equity position.

Cash Flow

Cash flow analysis shows a robust free cash flow growth rate of 36.05% in the TTM period, indicating improved cash generation. The operating cash flow to net income ratio is 0.34, and the free cash flow to net income ratio is 0.54, both suggesting efficient cash conversion. Overall, cash flow management appears strong, supporting financial flexibility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	74.72B	107.41B	106.57B	109.12B	106.00B	93.56B
Gross Profit	19.39B	27.26B	27.54B	24.51B	28.70B	25.38B
EBITDA	6.36B	8.62B	8.68B	6.60B	11.97B	8.50B
Net Income	2.83B	4.14B	4.09B	2.78B	6.95B	4.37B
Balance Sheet
Total Assets	57.85B	55.36B	57.77B	53.34B	53.81B	51.25B
Cash, Cash Equivalents and Short-Term Investments	4.34B	3.81B	4.76B	2.23B	5.91B	8.51B
Total Debt	20.40B	19.65B	19.88B	19.07B	16.47B	15.11B
Total Liabilities	42.43B	41.92B	43.10B	42.10B	40.98B	36.81B
Stockholders Equity	15.42B	13.43B	14.67B	11.23B	12.83B	14.44B
Cash Flow
Free Cash Flow	2.44B	3.81B	4.48B	-1.51B	5.08B	7.88B
Operating Cash Flow	3.10B	8.62B	7.37B	4.02B	8.63B	10.53B
Investing Cash Flow	-2.49B	-4.76B	-2.86B	-5.50B	-3.15B	-2.59B
Financing Cash Flow	-1.09B	-2.29B	-3.55B	-2.20B	-8.07B	-2.00B

Target Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 94.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 94.26 is above the 20-day moving average (MA) of 90.75, above the 50-day MA of 92.00, and below the 200-day MA of 102.43, indicating a neutral trend. The MACD of 1.10 indicates Negative momentum. The RSI at 68.86 is Neutral, neither overbought nor oversold. The STOCH value of 91.64 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
TGT	―	$42.83B	10.99	26.32%	4.60%	-1.55%	-11.41%
WMT	―	$846.48B	40.06	24.46%	0.87%	4.23%	38.05%
DG	―	$22.45B	18.87	15.60%	2.30%	4.98%	-15.98%
BJ	―	$12.09B	21.50	30.84%	―	2.48%	9.41%
COST	―	$413.11B	51.19	30.69%	0.53%	8.17%	9.92%
Sector *	―	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
DLTR	―	$20.20B	-7.55	20.07%	―	-29.67%	-178.03%

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.

The most recent analyst rating on (TGT) stock is a Hold with a $103.00 price target. To see the full list of analyst forecasts on Target stock, see the TGT Stock Forecast page.

Target Corp’s Earnings Call: Transition and Growth

Target Corp’s recent earnings call painted a picture of a company navigating through a transitional phase. While strategic initiatives in digital growth and specific categories like FUN 101 and trading cards are beginning to bear fruit, challenges such as a decline in overall comparable sales and tariff-related margin pressures remain. The announcement of a new CEO aims to tackle these issues with a renewed focus on style, technology, and enhancing the guest experience.

Target Corporation’s Q2 2025 Earnings and Leadership Update

Target Corporation, a leading retailer in the United States, operates nearly 2,000 stores and an online platform, offering a wide range of merchandise including apparel, home goods, and groceries. The company is known for its commitment to community support, donating a significant portion of its profits to various causes.

Target Announces New CEO Amid Leadership Transition

On August 15, 2025, Target Corporation announced that Michael J. Fiddelke will become the new Chief Executive Officer effective February 1, 2026, following a succession planning process. Current CEO Brian C. Cornell will step down but continue as Executive Chair of the Board, marking a significant leadership transition for the company.

The most recent analyst rating on (TGT) stock is a Buy with a $116.00 price target. To see the full list of analyst forecasts on Target stock, see the TGT Stock Forecast page.