Analysts see 12% further upside for TGT after a 20% Q2 EPS gain and strong ad, e-commerce growth.
Target shares surged 66% year-to-date, driven by a 20% increase in Q2 underlying earnings per share and a turnaround under CEO Michael Fiddelke. The stock, now trading at $161.98, remains 12% below the $183.19 price target set by analysts, who cite strong revenue growth and margin recovery as key catalysts.
Despite the rally, Target trades at 19x forward earnings, significantly below Walmart’s 40x and Costco’s 42x, despite comparable revenue growth. High-margin segments like Roundel ad billings, up nearly 20%, and Target Plus GMV, rising over 40%, are bolstering profitability amid a still-depressed valuation.
Shares hit a low near $81.20 in late 2025 before rebounding sharply, with a 15% gain in the past month alone. Analysts argue the stock’s multiple still undervalues the operational improvements, leaving room for further upside.