TD Cowen Lifts Target’s (TGT) PT to $110 from $100

Core Insights - Target Corporation (NYSE:TGT) is recognized as a strong dividend stock, with a current dividend yield of 4.62% and a history of increasing dividends for 54 consecutive years [1] - TD Cowen has raised the price target for Target from $100 to $110 while maintaining a Hold rating, reflecting a cautious optimism about the company's performance [1][2] Financial Performance - In Q2, Target reported a comparable sales decline of 1.9%, an improvement compared to a 3.8% drop in Q1, indicating a potential stabilization in sales trends [1] - The company has reiterated its full-year guidance, expecting low single-digit sales declines, which suggests a cautious outlook for the remainder of the year [1] Market Challenges - Target is facing margin pressure and declining sales in core categories, with home goods down 6% and apparel down 4%, although there are gains in specific segments like denim, performance wear, and women's products [2] - Increased competition from off-price retailers and online platforms such as SHEIN and Temu is making it more challenging for Target to maintain its style and design control in the retail market [3] Strategic Initiatives - The new CEO of Target is focusing on urgent changes, which may include significant measures related to owned brands, exclusive products, and AI initiatives, indicating a shift in strategy to adapt to current market conditions [2]