Quick Read
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RBC Capital raised Target (TGT) stock’s price target to $132 from $130 with an Outperform rating, signaling confidence that turnaround efforts are resonating before Q1 earnings.
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RBC’s upgrade ahead of Q1 earnings reflects momentum from Target’s turnaround efforts, though shares are already up 32% year-to-date and Target faces competitive headwinds as comparable store sales remain challenged.
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RBC Capital analyst Steven Shemesh raised the firm’s price target on Target (NYSE:TGT) stock to $132 from $130, maintaining an Outperform rating ahead of next week’s Q1 FY2026 earnings report. The firm stated it is “cautiously optimistic that turnaround efforts are beginning to resonate with the consumer.”
A $2 bump rarely moves the needle on its own. The story here is timing and tone: RBC nudged higher before the report on a name that has been a multi-year turnaround project, hinting that the bar for Q1 is rising.
|
Ticker |
Company |
Firm |
Action |
Old Rating |
New Rating |
Old Target |
New Target |
|---|---|---|---|---|---|---|---|
|
TGT |
Target |
RBC Capital |
Price target raised |
Outperform |
Outperform |
$130 |
$132 |
The Analyst’s Case
Shemesh’s “resonating with the consumer” phrase reflects momentum building since late last year. Target closed Q4 FY2026 with adjusted EPS of $2.44, beating consensus of $2.16 by 13%, while gross margin expanded 40 basis points to 27%.
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CEO Michael Fiddelke also noted that “Target saw a healthy, positive sales increase in February, serving as an important milestone on our path back to growth this year.” RBC appears to be leaning into that signal, plus growth in non-merchandise revenue, which rose more than 25% on Roundel ads, marketplace, and membership.
Company Snapshot
Target operates nearly 2,000 stores across the U.S., with brands spanning Target Circle, Target Circle 360, Roundel, and Drive Up. The company carries a market capitalization near $57.2 billion and just declared its 235th consecutive quarterly dividend.
Management guided FY2026 EPS to $7.50 to $8.50 and projected net sales growth in every quarter of 2026. For Q1, the company expects EPS flat to up slightly versus prior year’s adjusted $1.30.
