Target (TGT) Upgraded as Risk-Reward Improves Despite Lower Earnings Outlook

Target Corporation (NYSE:TGT) ranks among the stocks with the lowest forward PE ratios. On January 27, Wolfe raised Target Corporation (NYSE:TGT) to Peer Perform from Underperform, citing an adjustment in earnings expectations and indications of operational progress that have enhanced the stock’s risk-reward profile. While the company’s projections have continued to fall, Wolfe believes the downside is now modest, with some investors projecting FY2026 earnings in the low to mid-$5 range.

Meanwhile, DA Davidson boosted its price target for Target Corporation (NYSE:TGT) to $120 from $108 on January 12, citing the company’s improved margin prospects and noting that it should rank “among the better profit growth stories” as it grows on what the firm described as “a depressed base.”

In terms of the retail industry as a whole, DA Davidson predicts that over the next five years, its Retailing / Broadlines & Hardlines group will have average sales CAGRs of 4%, with profits rising by 6% and earnings per share rising by 9%.

Target Corporation (NYSE:TGT) is a diversified company and gains a major share of its sales from food and beverages. The retailer sells products through its stores and digital channels.

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