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Target’s Stock (NYSE: TGT) Tumbles After Earnings Miss – Analyst Reactions

Analyst Team trader
Updated 23 May 2024

Target Corporation (NYSE: TGT), one of the United States' leading general merchandise retailers, witnessed its stock price gap down from $155.78 to $140.54 before the market opened on Wednesday, following a weaker than expected earnings announcement. The share price dropped 8.03%. Through early trading a 0.32% drop before market opening continued the pattern of the day.

For the quarter, Target disclosed earnings per share (EPS) of $2.03, falling short of consensus estimates by $0.02. While the company's return on equity remained robust at 33.41%, its net margin was reported at 3.85%. These figures indicate that Target, while still profitable, is dealing with pressures that have impacted its bottom-line performance.

Revenue details for the quarter further painted a challenging picture for Target. The company posted revenues of $24.53 billion, which was below the anticipated $24.54 billion. When compared to the same quarter from the previous year, this represents a decrease of 3.2%. Such a downturn in revenue year-over-year suggests that Target may be facing hurdles in maintaining sales growth amidst a dynamic retail environment.

In the midst of these financial results, Target also announced a quarterly dividend. Shareholders can expect a $1.10 per share payout, which is scheduled for distribution on June 10th. Those looking to receive this dividend must hold shares before the ex-dividend date, which is set for May 14th.


Analyst Sentiments

As Target's share price takes a plummet, the general consensus of the stock is mixed. Although many analyst's have since revised their price target's on the shares, the target mean price still sits at $185.48 which is $42.21 above the current share price.

Following the gap down from the earnings release, several analysts have revised their position on Targets Stock:

  • JPMorgan have lowered the firm's price target on Target's shares to $165 from $185 and keeps a Neutral rating on the shares
  • Wells Fargo have lowered the firm's price target on Target's shares to $175 from $190 and keeps an Overweight rating on the shares
  • Stifel have lowered the firm's price target on Target's shares to $170 from $177 and keeps a Hold rating on the shares

These analysts remain positive on Target's share price:

  • Baird have kept an Outperform rating with a $190 price target on Target share price.
  • Deutsche Bank have raised the firm's price target on Target to $209 from $206 and they keeps a Buy rating on the Target's shares.

Target's business encompasses an extensive range of merchandise offerings, including apparel, beauty, personal care items, baby gear, and pet supplies. The retailer operates primarily in the United States, catering to a diverse customer base with its assortment of products.

Investors and analysts alike will likely be watching closely to see how Target navigates these financial headwinds in the coming quarters. The company's ability to adapt and potentially rebound from this earnings miss will be critical for restoring investor confidence and achieving long-term growth.

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The AskTraders Analyst Team features experts in technical and fundamental analysis, as well as traders specializing in stocks, forex, and cryptocurrency.