This analyst just raised his price target on Target
Roth analyst Bill Kirk raised his target on Target (Target Stock Quote, Chart, News, Analysts, Financials NYSE:TGT) to $114.00 from $88.00, citing a major first-quarter comparable sales and earnings beat, while maintaining a “Neutral” rating.
Target reported Q1 comparable sales growth of 5.6%, ahead of consensus at 2.4%, and adjusted EPS of $1.71, ahead of the Street at $1.47. Net sales were $25.44-billion, above consensus at $24.66-billion, while adjusted EBIT margin was 4.5%.
In his May 21 analysis, Kirk said the quarter was a significant step forward, especially following Walmart’s strong Q1, but he remains cautious because the beat came against easy comparisons and in a more favourable discretionary spending environment.
Target raised fiscal 2026 guidance, now expecting net sales growth of about four per cent and EPS at the high end of its previous $7.50 to $8.50 range. Kirk said two concerns remain: adjusted SG&A growth outpaced the revenue upside, and Q1 may have been a “Goldilocks quarter.”
For fiscal 2026, Kirk raised his comparable sales forecast to 2.4% from 0.5% and his EPS estimate to $8.48 from $8.00.
The analyst expects Target to generate Adjusted EBITDA of $8.46-billion on revenue of $108.35-billion in fiscal 2026, improving to $8.92-billion on revenue of $111.02-billion in fiscal 2027.
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Nick Waddell
Founder of Cantech Letter
Cantech Letter founder and editor Nick Waddell has lived in five Canadian provinces and is proud of his country's often overlooked contributions to the world of science and technology. Waddell takes a regular shift on the Canadian media circuit, making appearances on CTV, CBC and BNN, and contributing to publications such as Canadian Business and Business Insider.