RBC raises its price target on stronger sales, while Bank of America remains cautious ahead of second-quarter earnings.
- RBC raised Target’s price target to $166 and lifted Q2 comparable-sales growth forecast to 3% from 2%.
- Bank of America raised Target’s price target to $124 but kept an ‘Underperform’ rating.
- The firm cited stronger sales and resilient consumer spending but remains cautious about the sustainability.
Target Corp. (TGT) stock is headed for its third week of gains as Wall Street weighs improving sales momentum against lingering concerns over the sustainability of the retailer’s turnaround, with RBC turning more bullish while Bank of America remains cautious on Target’s earnings trajectory.
RBC Raises TGT Price Target On Improving Sales Momentum
RBC Capital raised its price target for Target to $166 from $153 and maintained an ‘Outperform’ rating, while lifting its estimate for second-quarter comparable-store sales growth to 3% from 2%.
The new price target implies nearly an 8% upside to the stock’s last closing price. The firm said its revised view reflects transaction trends, channel checks and discussions with the retailer during the quarter, and added that stronger sales could provide the company with greater merchandising leverage.
Target stock inched 0.1% lower in Thursday’s premarket. The stock has gained nearly 29% in the past three months.
Bank Of America Keeps A Cautious Rating For Target
Bank of America also increased its price target, moving it to $124 from $110, but retained an ‘Underperform’ rating. The firm projects comparable sales growth of 2.5% for Q2 and 2% during the back half of fiscal 2026, broadly consistent with Target’s guidance.
The firm raised its Q2 and full-year 2026 earnings forecasts by 3%, helped by better-than-expected sales and steady consumer spending. However, Bank of America is still unsure how long Target can maintain this sales growth.
Analysts have credited Target’s new leadership with helping revive sales performance. Bank of America described the progress as an “impressive improvement,” but questioned whether the recent gains will continue at the same pace and whether further earnings revisions can keep moving higher.
The retailer’s new CEO, Michael Fiddelke, took office in February. On Tuesday, the company appointed Chandhu Nair as its first chief AI officer. Target is slated to report Q2 earnings on August 19, with analysts expecting $26 billion in revenue and earnings of $2.3 per share, according to Fiscal Ai data.
TGT Stock: Retail View
On Stocktwits, retail sentiment around the stock improved to ‘bullish’ from ‘neutral’ territory the previous day. The stock saw a 325% increase in message volume over the past week.
A user said, “Looking Good!! Looking good! Prior earnings beat and new CEO!! TGT To 200+”
TGT stock has gained over 57% year-to-date.
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