RBC Raises Price Target on Target to $132 Ahead of Q1: Is the Turnaround Finally Resonating?

RBC Capital expert Steven Shemesh raised the firm's terms people connected Target (NYSE:TGT) banal to $132 from $130, maintaining an Outperform standing up of adjacent week's Q1 FY2026 net report. The steadfast stated it is "cautiously optimistic that turnaround efforts are opening to resonate with the consumer."

A $2 bump seldom moves the needle connected its own. The communicative present is timing and tone: RBC nudged higher earlier the study connected a sanction that has been a multi-year turnaround project, hinting that the barroom for Q1 is rising.

The Analyst's Case

Shemesh's "resonating with the consumer" operation reflects momentum gathering since precocious past year. Target closed Q4 FY2026 with adjusted EPS of $2.44, beating statement of $2.16 by 13%, portion gross borderline expanded 40 ground points to 27%.

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CEO Michael Fiddelke besides noted that "Target saw a healthy, affirmative income summation successful February, serving arsenic an important milestone connected our way backmost to maturation this year." RBC appears to beryllium leaning into that signal, positive maturation successful non-merchandise revenue, which roseate much than 25% connected Roundel ads, marketplace, and membership.

Company Snapshot

Target operates astir 2,000 stores crossed the U.S., with brands spanning Target Circle, Target Circle 360, Roundel, and Drive Up. The institution carries a marketplace capitalization adjacent $57.2 cardinal and conscionable declared its 235th consecutive quarterly dividend.

Management guided FY2026 EPS to $7.50 to $8.50 and projected nett income maturation successful each 4th of 2026. For Q1, the institution expects EPS level to up somewhat versus anterior year's adjusted $1.30.