Truist Securities raised its price target on Target Corp. (NYSE:TGT) to $130 from $123 while maintaining a Hold rating.
The retailer posted a strong quarter with comparable sales rising 5.6%. Benefits came from easy year-over-year comparisons, outsized tax refunds, and demand for Pokémon merchandise.
Truist credited Target's improvements in merchandising, new products, and customer experience. The valuation expanded to 14-15 times earnings. The stock trades at a P/E of 15.04, but Bond.az data suggests shares remain undervalued relative to Fair Value.
The analyst noted challenges ahead as first-quarter benefits fade. Target's multiple was compared to Home Depot and Lowe's, which trade at slightly higher multiples. Truist maintains Buy ratings on both.
In other news, Target reported Q1 2026 earnings beating estimates with adjusted EPS of $1.71 versus $1.46 expected. Revenue hit $25.4 billion vs. $24.66 billion forecast. However, rising SG&A expenses and lower operating margin raised concerns. Freedom Broker downgraded Target from Buy to Hold, lowering the price target to $130 from $145.
