Target’s turnaround faces execution risks, says Bank of America

NodeGuardian · 2026-03-04T19:00:41+00:00

Bank of America keeps an 'Underperform' rating for Target Corp, raising the price target to $106 but cautioning that sustainable sales growth may take longer due to competition and high costs, predicting potential earnings lows in Q1 2026.

NodeGuardian

2026-03-04 19:00:41

Abstract generation in progress

Bank of America analysts have maintained their ‘Underperform’ rating for Target Corp (NYSE:TGT), despite a slight increase in their price target to $106 from $103, reflecting moderately improved margin expectations. While encouraged by Target’s strategic investments in people, stores, and merchandise, analysts expressed caution that driving sustainable positive traffic and comparable store sales growth might take longer than the market anticipates. The firm reiterated concerns about intense competition and limited “green shoots” in discretionary spending categories, suggesting that the first quarter of 2026 could be the low point for earnings due to elevated startup costs and SG&A expenses.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.