Target Stock Plunges Despite Solid Q2 Results -- CEO Shakeup Sparks Selling
Aug 20 - Target Corporation 
TGT shares slipped about 7% on Wednesday after the retailer posted mixed second quarter results and announced a leadership transition. The market reaction reflected weaker year-over-year earnings despite signs of operational improvement.
Second quarter net sales came in at $25.2 billion, down 0.9% from the prior year. The drop was smaller than in the first quarter, showing that traffic and sales trends are stabilizing, particularly in stores. All six core merchandising categories saw sequential improvements, while digital comparable sales advanced 4.3% on the back of over 25% growth in same-day delivery through Target Circle 360 and continued strength in Drive Up.
Non-merchandise revenue also expanded, climbing 14.2% with solid growth in advertising, membership, and marketplace services. Adjusted and GAAP earnings per share landed at $2.05, below the $2.57 earned in 2024, as higher costs and tariff pressures weighed on profitability.
Along with results, the board said Monday it has elected Michael Fiddelke as Target's next CEO, succeeding Brian Cornell. The naming is consistent in leadership as the retailer takes the retailer into the high-stakes back-to-school and holiday selling seasons.
Is TGT Stock a Buy or Sell?
Based on the one year price targets offered by 30 analysts, the average target price for Target Corp is $105.48 with a high estimate of $140.00 and a low estimate of $82.00. The average target implies a upside of +0.11% from the current price of $105.36.
Based on GuruFocus estimates, the estimated GF Value for Target Corp in one year is $147.51, suggesting a upside of +40.01% from the current price of $105.36. Gf value is Gurufocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. For deeper insights, visit the forecast page.