Wolfe Expects More Spending at Target (TGT) as Activist Pressure Builds

Target Corporation (NYSE:TGT) is included among the 14 Best Dividend Growth Stocks to Buy and Hold in 2026.

On December 30, Wolfe Research analyst Spencer Hanus reiterated an Underperform rating on Target Corporation (NYSE:TGT) with an $81 price target after the Financial Times reported that activist investor Toms Capital is building a stake in the retailer. An activist presence could help reset the narrative around Target, which would be a positive, Hanus said in a research note. Wolfe expects additional balance sheet and income statement investments. The firm argues that price gaps in general merchandise need to be addressed and that stores require more labor hours.

Target’s third-quarter results sent mixed signals. Net sales fell 1.5% from a year earlier, while digital sales rose 2.4%. Despite the uneven performance, Target Corporation (NYSE:TGT) remains a Dividend King, having increased its dividend for 54 consecutive years.

The company is pushing harder into same-day delivery as competition intensifies. Same-day delivery volumes jumped 35% in the latest quarter. Management is also planning $5 billion in capital spending to support growth in 2026. Consumer discretionary spending remains a risk factor. Still, if economic conditions hold and the activist involvement helps drive operational change, the outlook for shareholders could improve over time.

Target Corporation (NYSE:TGT) is a general merchandise retailer selling products through its stores and digital channels.

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