Analysts Turn Bullish on Target's Strategic Turnaround and Stock Rally
Two prominent Wall Street analysts from Morgan Stanley and Jefferies have expressed bullish sentiments regarding Target's ongoing corporate turnaround, citing significant strategic overhauls and improving financial metrics. After suffering a nearly 28% decline in 2025, Target's shares have surged approximately 26% in 2026, driven by initiatives to expand grocery offerings, enhance high-end cosmetics displays, and broaden sports merchandise. Morgan Stanley analyst Simeon Gutman reiterated an overweight rating with a $145 price target, noting that the retailer is successfully winning back foot traffic. Similarly, Jefferies analyst Corey Tarlowe assigned a buy rating with a $140 target, arguing that the market misunderstands Target's earnings potential, which is bolstered by improved category mix and operating leverage rather than just traffic rebounds. This positive outlook contrasts with the broader consensus, where most analysts maintain hold ratings. The turnaround aims to reverse years of sales declines in key sectors like home and apparel, positioning Target to potentially end a four-year streak of losses. Near-term growth drivers include changes in consumable categories, while home furnishings may provide later boosts.
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Analysts Turn Bullish on Target's Strategic Turnaround and Stock Rally
Two prominent Wall Street analysts from Morgan Stanley and Jefferies have expressed bullish sentiments regarding Target's ongoing corporate turnaround, citing significant strategic overhauls and improving financial metrics. After suffering a nearly 28% decline in 2025, Target's shares have surged approximately 26% in 2026, driven by initiatives to expand grocery offerings, enhance high-end cosmetics displays, and broaden sports merchandise. Morgan Stanley analyst Simeon Gutman reiterated an overweight rating with a $145 price target, noting that the retailer is successfully winning back foot traffic. Similarly, Jefferies analyst Corey Tarlowe assigned a buy rating with a $140 target, arguing that the market misunderstands Target's earnings potential, which is bolstered by improved category mix and operating leverage rather than just traffic rebounds. This positive outlook contrasts with the broader consensus, where most analysts maintain hold ratings. The turnaround aims to reverse years of sales declines in key sectors like home and apparel, positioning Target to potentially end a four-year streak of losses. Near-term growth drivers include changes in consumable categories, while home furnishings may provide later boosts.
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