RBC Capital Markets maintained its Outperform rating on Target Corporation (NYSE:TGT) but lowered its price target from $112 to $103.
The change comes after Target reduced its 2025 guidance due to its first-quarter results. According to the firm’s analysis, should current tariff rates stay the same, Target Corporation’s future performance will be contingent on how consumers react to inflation in the second half of the year.
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In light of these factors, RBC Capital appears to have taken a cautious approach in its model, predicting margin and competitive challenges kicking off in the third quarter. Target’s comparable sales are now expected to decline 2.8% in 2025 and increase 2.0% in 2026. The previous projections called for a 0.2% decline and a 1.5% increase, respectively.
Additionally, RBC Capital has revised its adjusted earnings per share projections for TGT, lowering its previous estimates of $8.33 and $8.63 to $6.68 for 2025 and $7.34 for 2026.
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Read More: 10 Best Stocks to Buy According to the Bill & Melinda Gates Foundation Trust and 15 Best Stocks to Buy According to Jim Simons’ Renaissance Technologies.
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