Target (TGT) AI Stock Analysis

• Market Cap: $43.86B
• Dividend Yield: 4.59%
• Average Volume (3M): 7.83M
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.66
• Revenue Growth: -0.69%
• EPS Growth: 2.03%
• Country: US
• Employees: 440,000
• Sector: Consumer Defensive
• Sector Strength: 60
• Industry: Discount Stores
• EPS (TTM): 1.30
• Shares Outstanding: 454,365,900
• 10 Day Avg. Volume: 7,286,521
• 30 Day Avg. Volume: 7,828,155
• PEG Ratio: 3.85
• Price to Book (P/B): 2.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.72
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 0.11
• Enterprise Value/Gross Profit: 1.52
• Enterprise Value/Ebitda: 1.24
• 1Y Price Target: $102.50
• Price Target Upside: 6.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 30

• Rating: 66 Neutral
• Price Target: $104.00 ▲(7.55%Upside)

Target's stock score reflects stable financial performance with efficient cash management, but stagnant revenue growth and rising debt require attention. The stock is technically neutral, with a strong valuation due to low P/E and high dividend yield. Despite cautious earnings guidance, digital growth and strategic initiatives provide a positive outlook.

Positive Factors

Cost Efficiency

Target has achieved a delivery cost that is significantly lower than the traditional delivery model, which could help alleviate potential margin pressure.

Digital Sales

Target shows stronger trends in digital sales, seasonal events, and brand collaborations, which could enhance its market perception over time.

Sales Growth

Comparable sales grew 1.5%, driven by stronger-than-expected holiday season traffic recovery.

Negative Factors

Margin Pressure

Uncertainty is increasing as top-line weakness continues, leading to higher markdowns and additional margin pressure for Target Corp.

Market Performance

Target Corp is underperforming compared to peers like Walmart, with significant differences in comps, traffic, and digital growth rates.

Sales Decline

Target's first-quarter comparable sales declined by 3.8%, indicating weaker performance than expected.

Target Business Overview & Revenue Model

Company Description

Target Corporation (NYSE: TGT) is a leading American retail corporation headquartered in Minneapolis, Minnesota. It operates as a general merchandise retailer, offering a wide array of products including household essentials, apparel and accessories, electronics, and groceries. Target is renowned for its commitment to providing high-quality goods at competitive prices, coupled with a focus on customer experience through its network of stores and digital platforms. The company has established itself as a key player in the retail sector, emphasizing design, innovation, and convenience to meet the evolving needs of its customers.

How the Company Makes Money

Target makes money primarily through the sale of merchandise across its physical stores and online platform, Target.com. The company's revenue streams include various product categories such as apparel and accessories, beauty and personal care, food and beverage, home décor, electronics, and more. Target leverages its strong brand and extensive distribution network to drive sales both in-store and online. A significant portion of its earnings also comes from its private label brands, which offer higher margins compared to third-party products. Additionally, Target generates revenue through its credit card offerings, managed in partnership with financial institutions, which provide additional consumer financing and loyalty benefits. The company also benefits from strategic partnerships and collaborations with other brands and designers, enhancing its product offerings and attracting a diverse customer base.

Target Financial Statement Overview

Summary

Target demonstrates stable financial health with consistent profitability and sound financial management. The company maintains a strong equity position and efficient cash generation. However, stagnant revenue growth and rising debt levels pose challenges that require strategic focus to ensure long-term sustainability and market competitiveness.

Income Statement

Target's income statement indicates stable revenue with a slight year-over-year decline from 2024 to TTM (Trailing-Twelve-Months). Gross profit margin remains healthy at 28% for TTM, while net profit margin is at 3.95%, reflecting moderate profitability. The EBIT and EBITDA margins are at 5.42% and 8.45%, respectively, showcasing efficient operational management despite competitive industry pressures. However, revenue growth has plateaued, signaling a need for strategic initiatives to boost sales.

Balance Sheet

The balance sheet displays a solid equity base with stockholders' equity at $14.95 billion in TTM. The debt-to-equity ratio stands at 1.54, indicating manageable leverage levels. Return on Equity (ROE) is 27.99%, highlighting effective use of equity to generate profits. The equity ratio of 26.6% confirms a balanced asset financing strategy, though the increase in total debt warrants attention towards maintaining financial flexibility.

Cash Flow

Cash flow analysis shows a strong operating cash flow of $6.54 billion in TTM, with a free cash flow of $3.53 billion. The operating cash flow to net income ratio of 1.56 suggests efficient cash generation relative to profits. However, the free cash flow has decreased compared to previous periods, indicating potential challenges in maintaining cash reserves amidst capital expenditures.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	105.88B	106.57B	106.57B	109.12B	106.00B	93.56B
Gross Profit	29.66B	30.06B	29.68B	26.89B	31.04B	27.38B
EBITDA	8.95B	5.78B	8.62B	6.66B	11.97B	9.09B
Net Income	4.18B	4.09B	4.14B	2.78B	6.95B	4.37B
Balance Sheet
Total Assets	56.19B	57.77B	55.36B	53.34B	53.81B	51.25B
Cash, Cash Equivalents and Short-Term Investments	2.89B	4.76B	3.81B	2.23B	5.93B	8.51B
Total Debt	22.96B	19.88B	19.65B	18.78B	16.21B	14.90B
Total Liabilities	41.24B	43.10B	41.92B	42.10B	40.98B	36.81B
Stockholders Equity	14.95B	14.67B	13.43B	11.23B	12.83B	14.44B
Cash Flow
Free Cash Flow	3.53B	4.48B	3.81B	-1.51B	5.08B	7.88B
Operating Cash Flow	6.54B	7.37B	8.62B	4.02B	8.63B	10.53B
Investing Cash Flow	-2.98B	-2.86B	-4.76B	-5.50B	-3.15B	-2.59B
Financing Cash Flow	-4.28B	-3.55B	-2.29B	-2.20B	-8.07B	-2.00B

Target Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 96.70
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TGT, the sentiment is Positive. The current price of 96.7 is above the 20-day moving average (MA) of 96.17, above the 50-day MA of 95.39, and below the 200-day MA of 122.47, indicating a neutral trend. The MACD of 0.12 indicates Negative momentum. The RSI at 50.74 is Neutral, neither overbought nor oversold. The STOCH value of 41.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TGT.

Target Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WMT	78 Outperform	$776.18B	42.04	22.80%	0.96%	4.22%	-0.17%
BJ	77 Outperform	$15.02B	26.45	32.76%	―	2.84%	11.25%
COST	77 Outperform	$437.51B	56.83	32.08%	0.52%	5.94%	9.31%
DG	77 Outperform	$24.82B	21.61	15.69%	2.08%	4.77%	-23.73%
TGT	66 Neutral	$43.86B	10.61	29.08%	4.59%	-0.69%	2.03%
Sector *	62 Neutral	€15.48B	12.55	-4.55%	3.91%	-1.83%	-144.94%
DLTR	58 Neutral	$20.75B	―	19.25%	―	-20.46%	-202.26%

Target Corporate Events

Target Shareholders Approve Key Proposals at Annual Meeting

On June 11, 2025, Target Corporation held its Annual Meeting of Shareholders where four key proposals were voted on. The shareholders elected twelve directors for a one-year term, ratified the appointment of Ernst & Young LLP as the independent auditor for fiscal 2025, and approved the executive compensation plan. However, a proposal requesting a report on the impact of affirmative action initiatives was not approved, reflecting limited shareholder support for this measure.

The most recent analyst rating on (TGT) stock is a Hold with a $110.00 price target. To see the full list of analyst forecasts on Target stock, see the TGT Stock Forecast page.

Target Closes $1 Billion Notes Sale for Growth

On June 10, 2025, Target Corporation successfully closed the sale of $1 billion in notes, split equally between 4.350% Notes due 2028 and 5.250% Notes due 2036. This financial move, executed in collaboration with major financial institutions, is part of Target’s strategy to strengthen its financial position and support future growth initiatives.

The most recent analyst rating on (TGT) stock is a Hold with a $110.00 price target. To see the full list of analyst forecasts on Target stock, see the TGT Stock Forecast page.

Target Announces Departure of Two Key Executives

On May 21, 2025, Target Corporation announced the upcoming departure of two key executives, Christina Hennington and Amy Tu. Christina Hennington, currently Executive Vice President and Chief Strategy and Growth Officer, will transition to a strategic advisor role until September 7, 2025, after which she will leave the company with severance benefits. Amy Tu, Executive Vice President and Chief Legal & Compliance Officer, will end her employment on June 1, 2025, also receiving severance benefits. These changes are part of transition agreements filed with Target’s quarterly report.

The most recent analyst rating on (TGT) stock is a Hold with a $110.00 price target. To see the full list of analyst forecasts on Target stock, see the TGT Stock Forecast page.