Wolfe Research has initiated coverage on Target Corp (TGT) with an Underperform rating, marking the firm's first assessment of the retailer's investment potential. This decision reflects an analysis of Target's business dynamics and growth prospects within the competitive retail landscape.
Currently, Target Corp operates nearly 2,000 stores across the United States, offering a wide range of general merchandise and food items. The company has a market capitalization of $39.3 billion and a trailing twelve-month price-to-earnings (P/E) ratio of 10.44. Target's earnings per share (EPS) stands at 8.24, with a notable dividend yield of 529.7%.
Wolfe's Underperform rating comes as Target prepares for its upcoming earnings report on November 19, 2025, with analysts estimating an EPS of $1.74 and revenue of $25.6 billion. Recent performance has shown mixed results, with the company reporting an EPS of $1.78 in Q3 2026, surpassing expectations by 2.3%. However, this follows a larger-than-expected miss in Q1 2026, where EPS fell to $1.30 against an estimate of $1.62.
Analyst ratings serve as professional opinions based on extensive research and financial models. However, they should be viewed as one of many factors influencing investment decisions, alongside company fundamentals and broader industry trends. It is important to note that ratings can evolve as new information emerges, leading to differing opinions from various analysts.
As of November 1, 2025, the analyst consensus on Target is categorized as Hold, with 6 Strong Buy, 9 Buy, 24 Hold, 4 Sell, and 2 Strong Sell ratings recorded in the latest assessments. The recent action by Wolfe Research underscores the ongoing scrutiny of Target's market position and future potential in a rapidly changing retail environment.