Quick Read
RBC Capital raised Target (TGT) stock’s price target to $132 from $130 with an Outperform rating, signaling confidence that turnaround efforts are resonating before Q1 earnings.
RBC’s upgrade ahead of Q1 earnings reflects momentum from Target’s turnaround efforts, though shares are already up 32% year-to-date and Target faces competitive headwinds as comparable store sales remain challenged.
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RBC Capital analyst Steven Shemesh raised the firm’s price target on Target (NYSE:TGT) stock to $132 from $130, maintaining an Outperform rating ahead of next week’s Q1 FY2026 earnings report. The firm stated it is “cautiously optimistic that turnaround efforts are beginning to resonate with the consumer.”
A $2 bump rarely moves the needle on its own. The story here is timing and tone: RBC nudged higher before the report on a name that has been a multi-year turnaround project, hinting that the bar for Q1 is rising.
Ticker
Company
Firm
Action
Old Rating
New Rating
Old Target
New Target
TGT
Target
RBC Capital
Price target raised
Outperform
Outperform
$130
$132
The Analyst’s Case
Shemesh’s “resonating with the consumer” phrase reflects momentum building since late last year. Target closed Q4 FY2026 with adjusted EPS of $2.44, beating consensus of $2.16 by 13%, while gross margin expanded 40 basis points to 27%.
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CEO Michael Fiddelke also noted that “Target saw a healthy, positive sales increase in February, serving as an important milestone on our path back to growth this year.” RBC appears to be leaning into that signal, plus growth in non-merchandise revenue, which rose more than 25% on Roundel ads, marketplace, and membership.
Company Snapshot
Target operates nearly 2,000 stores across the U.S., with brands spanning Target Circle, Target Circle 360, Roundel, and Drive Up. The company carries a market capitalization near $57.2 billion and just declared its 235th consecutive quarterly dividend.
Management guided FY2026 EPS to $7.50 to $8.50 and projected net sales growth in every quarter of 2026. For Q1, the company expects EPS flat to up slightly versus prior year’s adjusted $1.30.
