Target (TGT) Stock Forecast & Price Target

Target's financial performance is underscored by its substantial revenue generation of over $106 billion in fiscal 2024, driven by a diverse product assortment across multiple categories, with solid contributions from private-label brands constituting around 30% of its sales. The company's capital expenditure plans reflect a commitment to growth, with an increase to $5 billion in FY'26 aimed at enhancing store remodels, new locations, and technology investments, aligning with its strategy of leveraging its extensive physical store network that fulfills over 97% of sales. Additionally, Target's ability to capitalize on scale benefits positions it favorably against smaller competitors, particularly amidst improving consumer spending outlooks that could further bolster its market share gains.

Target has experienced a decline in store comparable sales, which fell by 3.8% alongside decelerating traffic trends, resulting in a three-year stacked comparable sales decline to -7.3% in the most recent quarter. The company's digital growth has also stagnated, recording only a modest 2.4% year-over-year increase, significantly trailing behind larger competitors. Additionally, Target has lowered its earnings guidance for fiscal year 2025, reflecting a more challenged outlook amidst ongoing volatility and a disappointing performance in the third quarter.