Analyst on Target (TGT): 'A Lot of Work to Do'

We recently published 10 Most Popular Analyst Calls to Watch This Week. Target Corp (NYSE:TGT) is one of the trending stocks.

Dana Telsey from Telsey Advisors said in a recent program on CNBC that there’s “a lot of work to do” at Target Corp (NYSE:TGT) as the company is lagging behind its competitors. The analyst agreed with the program’s host that people “didn’t like” the new CEO change at the company.

“There’s a lot of work to do. They’re coming to my conference tomorrow. You have a new CEO that’s been appointed, promoted from within. You’ve got a consumer, which people didn’t like, by the way. Right. Well, they didn’t. They wanted like some slick outsider that might change things, right? Well, you need change. You look at the results lately. You need change. We have to see what that change is going to look like especially when you have so much competition whether it’s from the off-pricers. You’ve got Amazon Prime Day today, early indications of search interest for Amazon Prime Day pretty good, traffic up nearly 20%. Which is a big number.”

Matrix Asset Advisors stated the following regarding Target Corporation (NYSE:TGT) in its Q1 2025 investor letter:

“The market’s Q1 volatility provided opportunities to take profits on strength while very slowly redeploying the proceeds. With our larger-than-usual sales and scale-backs, we entered the current quarter with a higher-than usual cash balance, allowing us to add to some laggards and start a new position in Target Corporation (NYSE:TGT), a name we have held before in the portfolio. As we write this commentary, more stocks are nearing compelling levels, and we expect to accelerate our buying.

Target is a well-run retail company whose recent results were less than expected, causing the stock price to fall to attractive levels. Though we expect the economic slowdown and tariffs to depress near-term results, expectations are low enough to provide excellent appreciation from the current price. We started buying the shares a little above $100 at the end of March, down from a 52-week high of $177, and are adding to the position on weakness. The company trades for just over 12 times earnings and has a current well-covered dividend yield of 4.3% on March 31. It is one of only 55 companies that have raised their dividend annually for at least 50 years.”

While we acknowledge the potential of TGT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.