Target (TGT) Stock Forecast & Price Target

Target's robust financial performance is reflected in its fiscal 2024 sales of over $106 billion, backed by a diverse product offering spanning multiple categories. The company's strategic focus on its substantial physical store network, which accounts for over 97% of sales, positions it favorably against smaller competitors, particularly in the face of ongoing supply chain challenges. Additionally, with plans to increase capital expenditures to $5 billion in FY'26, Target demonstrates a commitment to investing in store renovations, technology, and expansion, which can further enhance its competitive edge and drive market share growth.

Target's financial outlook remains negative due to declining store comparable sales, which fell by 3.8%, alongside a decrease in traffic trends that showed a year-over-year decline of 2.2%. The company has also revised its 2025 EPS guidance downwards, from $7-$9 to $7-$8, indicating concerns over a volatile market environment and disappointing performance in the third quarter, where sales growth was below expectations. Furthermore, digital sales growth was minimal at 2.4% year-over-year, significantly lagging behind larger competitors and illustrating the challenges Target faces in enhancing its e-commerce segment.