Target (TGT) has gone from one of the most outspoken supporters of diversity, equity, and inclusion (DEI) to borderline radio silent as it joins a swath of other companies ditching the initiative. While the retailer says it maintains its “commitment to inclusion,” it also dropped its promise to increase its black workforce by 20%.
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This is part of a larger change at Target, which includes ending its executive racial equity committee. Other changes at the company are the end of its agreement to focus on black suppliers, instead opting for a focus on small businesses.
These changes come alongside a shifting cultural and political landscape. This shift is what allowed President Donald Trump to win the 2024 election. It also resulted in Republicans winning the Senate and the House last year. Adding to that is a conservative-leaning Supreme Court. These highlight the cultural changes taking place in the U.S.
Target Abandons LGBT Activism
Target is also shying away from the LGBT community with its decision to no longer take part in the Human Rights Campaign’s diversity-focused surveys. This, alongside its other policy changes, have caught the attention of LGBT groups. That includes Twin Cities Pride dropping Target as a sponsor of its LGBT pride festival. This is the second-largest pride festival in Minnesota and Target was a supporter for 18 years.
While Target has been a long-time supporter of progressive causes, its big push came roughly five years ago with the death of George Floyd in 2020. Things seemed to be going well for the company with its shares rising in the years to follow. However, that luster started to wane in 2022. Since then, the stock has fallen 30.06%. Building on that is a 2.22% drop as of this writing.
Is TGT Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Target is Moderate Buy based on 15 Buy and 15 Hold ratings over the last three months. With that comes an average price target of $146.82, a high of $188, and a low of $108. This represents a potential 8.78% upside for TGT stock.
