Valued at $63.2 billion by market cap, Target Corporation (TGT) is a premier retail company serving millions of customers across the United States. Headquartered in Minneapolis, Minnesota, the company operates an extensive network of stores and a thriving e-commerce platform, offering a wide range of affordable and quality products, including essentials, home goods, apparel, and groceries. Target is set to announce its Q4 earnings on Tuesday, Mar. 4.
Ahead of the event, analysts expect Target to report a profit of $2.23 per share on a diluted basis, down 25.2% from $2.98 per share in the year-ago quarter. The company beat the consensus estimates in two of the last four quarters while missing the forecast on two other occasions. In fiscal Q3, Target reported an adjusted EPS of $1.85, falling 19.2% short of consensus estimates, primarily due to elevated costs and margin pressures.
For the full year, analysts expect Target to report a profit of $8.69 per share, down 2.8% from $8.94 in fiscal 2023.
Target's shares have decreased marginally over the past 52 weeks, significantly underperforming the S&P 500 Index's ($SPX) 22.9% gains and the Consumer Staples Select Sector SPDR Fund’s (XLP) 10.2% gains over the same period.
Target's stock tumbled nearly 22% on Nov. 20 following the release of its Q3 earnings results. Revenue grew 1.1% year over year to $25.7 billion, but operating income fell 11.2% to $1.2 billion, with the margin rate declining to 4.6%. Comparable sales rose 0.3%, driven by a 10.8% increase in digital sales, offsetting a 1.9% drop in store sales. Higher supply chain, inventory, and team member costs pressured margins, while disciplined cost management provided partial relief.
Analysts’ consensus opinion on TGT stock is cautiously bullish, with a “Moderate Buy” rating overall. Out of 33 analysts covering the stock, 14 advise a “Strong Buy” rating, three suggest a “Moderate Buy” rating, 15 give a “Hold” rating, and one recommends a “Strong Sell.” TGT’s average analyst price target is $148.12, indicating a potential upside of 3.9% from the current levels.
