Target (TGT) is scheduled to release its fourth-quarter earnings on Tuesday morning, with analysts projecting notable upside potential for the retailer’s stock. According to Visible Alpha, analysts are divided on their ratings, with five “buy” and seven “hold” recommendations. Their average price target of approximately $144 indicates a potential 15% increase from Monday’s intraday price. Target is expected to report quarterly revenue of $30.77 billion and adjusted earnings per share of $2.26, reflecting year-over-year declines of 3.6% and 24%, respectively. However, comparable store sales are anticipated to rise by 1.39% year-over-year, a figure that has improved since Target raised its comparable sales forecast in January.
Analysts from JPMorgan, Oppenheimer, and Morgan Stanley predict that Target will adopt a conservative outlook for the first quarter and 2025, aligning with peers like Walmart (WMT) and Home Depot (HD). Despite concerns over tariffs and inflation affecting discretionary spending, Oppenheimer analysts remain optimistic, stating that shares have likely bottomed and suggesting investors capitalize on post-earnings volatility. Historically, Target shares have experienced double-digit swings after four of the last five earnings reports.
Succession planning is also under scrutiny as CEO Brian Cornell approaches a decade in his role. JPMorgan analysts noted that Cornell plans to stay for three more years as of September 2022, with an internal candidate likely to succeed him. Target shares have declined nearly 18% over the past 12 months, trading at $124.24 on Monday.
UPDATE—March 3, 2025: This article has been updated to reflect recent analyst estimates and share price values. — news from Investopedia