Zacks Research Downgrades Target's Q2 Earnings Forecast

Target Co. (NYSE:TGT - Free Report) recently had its Q2 2026 earnings estimates revised downward by analysts at Zacks Research. This update came in a report released on Tuesday, March 18th.

Zacks analyst S. Singh has now adjusted the expectation for Target’s earnings per share (EPS) for the upcoming quarter to $2.54, a decrease from the previous prediction of $2.60. The current consensus for Target's full-year earnings stands at $8.69 per share.

Furthermore, Zacks Research provided additional forecasts for Target's future earnings: they estimate earnings of $2.18 EPS for Q3 2026, $9.14 EPS for the entire fiscal year of 2026, $2.68 EPS for Q2 2027, $2.33 EPS for Q3 2027, $9.80 EPS for the fiscal year 2027, and $10.25 EPS for fiscal year 2028.

Target's last quarterly earnings report was announced on March 4th, where the retailer exceeded analysts' expectations by reporting an EPS of $2.41, surpassing the consensus estimate of $2.24 by $0.17. For that quarter, Target achieved a net margin of 4.06% and a return on equity of 31.11%, with reported revenue of $30.92 billion, slightly above the anticipated $30.83 billion.

In addition to Zacks Research, several other analysts have issued their reports regarding Target. For instance, Telsey Advisory Group lowered their target price for Target shares from $150.00 to $145.00 while maintaining an "outperform" rating. Similarly, UBS Group reduced their target price from $170.00 to $155.00 and keeps a "buy" rating on the stock. Meanwhile, HSBC Global Research downgraded their rating from "strong-buy" to "hold," while Daiwa Capital Markets changed their rating from "outperform" to "neutral" and slashed their target price from $170.00 to $130.00. BMO Capital Markets also lowered its price target from $160.00 to $120.00, rating Target as “market perform.” Overall, one analyst has given a sell rating, seventeen maintain a hold rating, and fifteen analysts have assigned a buy rating to the stock, resulting in an average rating of "Hold" and a consensus target price of $145.55 according to data from MarketBeat.

Current Stock Performance

As of Thursday, NYSE:TGT opened at $104.81. Over the past year, Target's stock has seen a low of $103.46 and a high of $181.86. The company’s 50-day moving average is recorded at $127.31 while the 200-day moving average stands at $138.71. Target's current ratio is at 0.94, and its quick ratio is 0.25, with a debt-to-equity ratio of 0.99. The market capitalization of the company is about $47.75 billion, with a price-to-earnings (P/E) ratio of 11.11 and a price-to-earnings-growth (PEG) ratio of 1.94. The stock's beta is noted at 1.18.

Dividend Announcement

Target has also announced a quarterly dividend of $1.12 per share, set to be paid to stockholders on Sunday, June 1st. Stockholders who are on record as of Wednesday, May 14th, will receive this dividend, which translates to an annualized dividend of $4.48 and a yield of 4.27%. The ex-dividend date is expected to be on May 14th, with the company maintaining a dividend payout ratio (DPR) of 50.56%.

Institutional Trading Trends

Recently, various institutional investors made changes in their positions regarding Target. DSG Capital Advisors LLC acquired a new position in the firm worth approximately $18 million during the fourth quarter. Meanwhile, Wealth Enhancement Advisory Services LLC increased its stake by 6.6%, now owning 166,086 shares valued at roughly $22.45 million after purchasing an additional 10,356 shares. Other firms such as Centaurus Financial Inc. and Mattson Financial Services LLC also lifted their stakes during the fourth quarter. Overall, institutional investors now hold about 79.73% of Target's stock.

Company Overview

Target Corporation operates as a general merchandise retailer in the United States. The company provides a vast range of products, including apparel for all ages, jewelry, beauty products, cleaning supplies, and more.

Target, Earnings, Estimates