Target Corporation (NYSE:TGT) reported on Tuesday mixed fourth-quarter earnings, with earnings beating the estimates and sales missing them.
The company also unveiled a sweeping investment plan for 2026.
Following this, several analysts upgraded the rating or revised the price forecast for the company.
• Target stock is trading at elevated levels. Where are TGT shares going?
Earnings Snapshot
The company reported fourth-quarter adjusted earnings per share of $2.44, beating the consensus of $2.15, while sales of $30.453 billion (down 1.5% year-over-year) missed the Street view of $30.512 billion.
The firm is looking for 2026 adjusted EPS of $7.50-$8.50, versus an analyst estimate of $7.68 and sales of $106.876 billion, versus the analyst estimate of $106.672 billion.
Expansion, Remodels and AI Take Center Stage
Target plans to invest an incremental $2 billion in 2026.
The company also plans to increase capital investment by more than $1 billion in 2026 — for a total of approximately $5 billion — to support new stores and ongoing remodels, as well as technology and supply chain investments.
It is a part of a broader goal to establish 300 new locations by 2035. Also, the company plans to invest in full-store remodeling of over 130 stores.
Telsey Advisory Group: Analyst Joseph Feldman upgraded the company from Market Perform to Outperform and raised the price forecast from $110 to $145.
The analyst is bullish on the company’s plan to drive growth through refreshed merchandising, enhanced customer experience and AI-driven operations.
The analyst raised the 2026 EPS estimate to $8.07 from $7.95 (FS $7.64), assuming a lower comp of 1% (previously 1.5%; FS 0.9%) and slightly higher operating margin expansion of 25 bps to 4.8% (FS 4.6%).
For 2027, Feldman forecasts EPS of $8.63 versus $8.59 previously (FS $8.10), with a 2% comp (up from 1.5%; FS 2.0%) and ~20 bps operating margin expansion to 5.0% (FS 4.7%).
Guggenheim Partners: Analyst John Heinbockel maintained a Buy and raised the price forecast from $125 to $130.
The analyst noted the company’s near-term margin reset as management focuses on a TGT-style turnaround centered on product, marketing, and customer experience in the quarter.
The 8% outperformance versus the S&P 500 reflects a measured approach, supported by 2%–3% comp growth in February, adds the analyst.
Heinbockel said that unlike consumables-driven peers, Target emphasized product “newness” over price or supply chain investments, with discretionary categories’ cyclicality and high innovation demands making steady growth challenging.
TGT Price Action: Target shares are up 0.91% at $121.94 at publication on Wednesday.
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