Target (TGT) Upgraded as Risk-Reward Improves Despite Lower Earnings Outlook

Company Overview - Target Corporation (NYSE:TGT) is a diversified retailer that generates a significant portion of its sales from food and beverages, selling products through both physical stores and digital channels [3]. Investment Sentiment - Wolfe raised Target Corporation's rating to Peer Perform from Underperform, citing an adjustment in earnings expectations and operational progress that has improved the stock's risk-reward profile [1]. - DA Davidson increased its price target for Target Corporation to $120 from $108, highlighting improved margin prospects and positioning the company as a strong profit growth story from a depressed base [2]. Earnings Projections - Despite continued declines in the company's projections, Wolfe believes the downside risk is now modest, with some investors forecasting FY2026 earnings in the low to mid-$5 range [1]. - DA Davidson predicts that the retail industry will experience average sales CAGRs of 4% over the next five years, with profits increasing by 6% and earnings per share rising by 9% [2].