Three Analysts Raise Target (NYSE: TGT) Price Targets Following Q2 Beat

Three Wall Street firms raised their price targets on Target Corporation (NYSE: TGT) on Friday, August 21, following better-than-expected second-quarter results reported earlier in the week. Shares gained 4.54% on Friday while the S&P 500 rose 0.41%.

Analyst Actions

• Telsey Advisory Group analyst Joseph Feldman maintained an Outperform rating and raised his price target from $170 to $182.
• Goldman Sachs analyst Kate McShane maintained a Neutral rating and raised her target from $127 to $161.
• Citigroup analyst Paul Lejuez maintained a Neutral rating and raised his target from $148 to $160.

Q2 2026 Results in Brief

• Q2 GAAP and adjusted EPS of $4.11 doubled from $2.05 in the prior-year period; results included $1.65 per share in IEEPA tariff refund benefits.
• Excluding tariff refunds, EPS grew 20% year over year.
• Net sales of $26.5 billion rose 5.3% year over year, with comparable sales up 3.8%, driven by a 3.6% increase in comparable traffic.
• Digital comparable sales grew 8.7%, led by more than 25% growth in same-day delivery.
• Full-year GAAP and adjusted EPS guidance was updated to a range of $9.90 to $10.90, up from the prior range of $7.50 to $8.50; the full-year net sales growth outlook was raised to approximately 5%, one percentage point above prior guidance.

Why It Matters

The coordinated target increases from three firms reflect the breadth of Target's second-quarter performance: comparable sales growth was positive across all six core merchandise categories, with double-digit growth in Fun 101 (hardlines) and high single-digit growth in both Food & Beverage and Beauty. Non-merchandise sales, which include Roundel advertising revenue, Target Circle 360 membership, and the Target+ marketplace, grew more than 20% in the quarter.

CEO Michael Fiddelke noted in the earnings release that Target has reduced prices on more than 10,000 frequently purchased items over the past year. The company also reported that after-tax return on invested capital reached 15.4% for the trailing twelve months through Q2 2026, up from 14.3% a year earlier, reflecting improved capital efficiency alongside higher capital expenditures of $1.4 billion in the quarter, primarily for store remodels and new stores.

Wall Street View

Among the three firms acting Friday, only Telsey carries an Outperform rating; both Goldman Sachs and Citigroup maintain Neutral ratings despite raising their targets meaningfully. Goldman's revision from $127 to $161 represents the largest percentage increase of the three adjustments. The divergence between Telsey's constructive stance and the two Neutral ratings from larger banks suggests the investment community sees the turnaround progressing but remains cautious about the stock's valuation at current levels.

Investor Takeaway

Target's Q2 results provided enough upside on both the top and bottom lines to prompt target increases across ratings tiers, but the persistence of two Neutral ratings alongside Telsey's Outperform indicates that the debate over Target's sustainable margin profile, particularly with tariff refunds excluded from forward guidance, has not fully resolved. Investors watching the stock will likely focus on whether the company can sustain comparable sales growth above 3% in the second half without the one-time $994 million tariff refund benefit that significantly inflated Q2 operating income.