Analyst Oliver Chen from TD Cowen maintained a Hold rating on Target (TGT – Research Report) and decreased the price target to $140.00 from $145.00.
Oliver Chen has given his Hold rating due to a combination of factors impacting Target’s current and future performance. The company’s conservative guidance for fiscal year 2025, which forecasts flat comparable sales and only a modest improvement in operating margins, suggests a cautious outlook. Additionally, while the investor day emphasized the importance of reliability, product execution, and ecosystem growth, there remain concerns about Target’s volatility across seasonal periods and product categories.
Moreover, Target faces a potentially weaker competitive position compared to more needs-based retailers like BJ’s, Walmart, and Costco. The company’s efforts to improve forecast reliability in areas such as inventory levels and delivery speeds are ongoing challenges. Despite a better-than-expected fourth quarter, the guidance for the upcoming year was softer, and the stock’s valuation is currently below its three-year average. These factors contribute to the Hold rating, with a price target maintained at $140.
Chen covers the Consumer Cyclical sector, focusing on stocks such as MYT Netherlands, The Estée Lauder Companies, and Capri Holdings. According to TipRanks, Chen has an average return of 5.7% and a 51.41% success rate on recommended stocks.
In another report released yesterday, Citi also reiterated a Hold rating on the stock with a $133.00 price target.