Wells Fargo Maintains Overweight Rating on Target (TGT), Cuts PT

On May 22, Wells Fargo lowered its price target on Target Corp. (NYSE:TGT) to $115 from $135 but kept an Overweight rating on the shares.

The rating update came after the company reported fiscal Q1 2025 results on May 21. The firm noted that the company had a challenging fiscal Q1 2025 as per expectations, and the share loss was clearly evident. It experienced a 3.8% drop in comparable sales, while comparable store sales underwent a 5.7% decrease.

Target Corp. (NYSE:TGT) also cut its fiscal year 2025 guidance. It now estimates a low-single-digit decline in sales and an adjusted EPS of approximately $7.00 to $9.00. This excludes litigation settlement gains in Q1. The company also expects a GAAP EPS of $8.00 to $10.00.

Wells Fargo opined that this full-year guidance cut includes a reasonable view that takes tariffs into account. However, it added that there is low visibility on a sustained recovery, and valuation is the primary attraction at the moment for the company.

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