Zacks Research Lowers Target's Q2 Earnings Forecast

Target Co. (NYSE:TGT - Free Report) has seen a downgrade in its earnings forecast for Q2 2026, according to a report from Zacks Research. On March 18th, research analyst S. Singh adjusted the expected earnings per share for the retailer from $2.60 to $2.54 for the upcoming quarter. This update reflects a cautious outlook as Target continues to navigate a challenging retail environment.

The consensus estimate for Target's full-year earnings currently stands at $8.69 per share. Additionally, Zacks Research has provided earnings estimates for future quarters: Q3 2026 is projected at $2.18 EPS, FY2026 at $9.14 EPS, Q2 2027 at $2.68 EPS, Q3 2027 at $2.33 EPS, FY2027 at $9.80 EPS, and FY2028 at $10.25 EPS.

Recent Earnings Report

Target most recently reported its quarterly earnings on March 4th, where it achieved $2.41 EPS, surpassing the analysts' consensus expectations of $2.24 EPS by $0.17. During this quarter, the company had a net margin of 4.06% and a return on equity of 31.11%, with total revenue reaching $30.92 billion, slightly ahead of the anticipated $30.83 billion.

Analyst Ratings and Target Prices

A variety of other research analysts have also reevaluated their perspectives on Target's stock. Telsey Advisory Group reduced its target price from $150.00 to $145.00 while maintaining an "outperform" rating. In a similar vein, UBS Group lowered its price target from $170.00 to $155.00 and continued to endorse a "buy" rating.

On the other hand, HSBC Global Research downgraded its position on Target from "strong-buy" to "hold" in November. Daiwa Capital Markets also lowered its rating from "outperform" to "neutral," adjusting their price target from $170.00 to $130.00 in late November. Furthermore, BMO Capital Markets revised its target price from $160.00 to $120.00, assigning a "market perform" rating.

Currently, there is a mixture of ratings with one sell rating, seventeen holds, and fifteen buy ratings assigned to Target stock. MarketBeat indicates that the overall average rating is "Hold" with a consensus price target set at $145.55.

Current Stock Performance

As of Thursday, Target's stock opened at $104.81, with a one-year low of $103.46 and a high of $181.86. The company displays a 50-day moving average of $127.31 and a 200-day moving average of $138.71. Financial ratios indicate a current ratio of 0.94, a quick ratio of 0.25, and a debt-to-equity ratio of 0.99. The market capitalization stands at $47.75 billion, with a P/E ratio of 11.11, a price-to-earnings-growth ratio of 1.94, and a beta of 1.18.

Dividend Announcement

Recently, Target declared a quarterly dividend of $1.12 per share, payable on June 1st to stockholders of record as of May 14th. This annualizes to a dividend of $4.48, translating to a dividend yield of 4.27%. The ex-dividend date is also set for May 14th. Notably, Target's current dividend payout ratio is 50.56%.

Institutional Trading Trends

Recently, there have been changes among institutional investors regarding Target’s stock. DSG Capital Advisors LLC entered a new position valued at approximately $18.24 million in the fourth quarter. Wealth Enhancement Advisory Services LLC boosted its stake by 6.6%, owning 166,086 shares worth $22.45 million after acquiring an additional 10,356 shares. Other institutional investors like Centaurus Financial Inc. and Mattson Financial Services LLC also increased their holdings, reflecting positive institutional interest.

Company Overview

Target Corporation operates primarily as a general merchandise retailer in the United States, providing a wide array of products including apparel for all ages, beauty products, and household necessities.

Target, Earnings, Forecast