Morgan Stanley Raises Target (TGT) to $125, Reaffirms Overweight in Retail Sector Update

Core Viewpoint - Target Corporation (NYSE:TGT) is gaining significant attention from investors, with recent upgrades and positive outlooks from analysts indicating strong potential for growth in the retail sector [2][3]. Group 1: Analyst Upgrades and Price Targets - Morgan Stanley raised its price target on Target to $125 from $112, maintaining an Overweight rating as part of a broader retail sector outlook for 2026 [2]. - Gordon Haskett upgraded Target to a Buy from Hold, establishing a new price target of $140, suggesting over 30% upside from current levels [3]. Group 2: Investor Interest and Stock Performance - During the week ending January 16, Target was one of the major beneficiaries of increased investment in retail stocks, pushing its stock into overbought territory with an RSI of 80 [3]. - Target's long-term track record of profitability, with stronger gross and operating margins compared to peers, continues to attract investor interest [3]. Group 3: Company Fundamentals - Despite facing short-term challenges, Target's balance sheet remains strong, supporting its commitment to paying dividends to shareholders [4]. - Target operates as a major general merchandise retailer, selling products through both physical stores and expanding digital channels [4].