economy
Two Wall Street analysts are getting bullish on a Target turnaround. Here's why
Target shares are soaring in 2026, and that trend could get a boost as the retailer revamps its stores, analysts said.
TL;DR
- Target shares have surged approximately 26% in 2026, on track to reverse four years of losses.
- The retailer is undergoing a strategic overhaul, announced in March, to attract more shoppers.
- Revamp includes expanding grocery offerings, introducing high-end cosmetics displays, and offering more sports merchandise.
- Analysts Simeon Gutman (Morgan Stanley) and Corey Tarlowe (Jefferies) are optimistic about Target's turnaround.
- Morgan Stanley reiterates an overweight rating with a $145 price target, suggesting 21% upside.
- Jefferies maintains a buy rating with a $140 price target, implying 17% upside.
- The company's recovery is attributed to improved category mix, better markdown discipline, and the return of operating leverage.
- Near-term drivers include changes in consumable categories (Food & Beverage, Beauty), with Home Furnishings & Décor a potential later boost.
- Target's stock has lost over half its value since a November 2021 high but has shown turnaround signs, outperforming the S&P 500 this year.