Jefferies Raises Target (TGT) Price Target to $161, Maintains Buy

Jefferies raised its price target for Target Corporation (NYSE:TGT) to $161 from $140, reiterating a Buy rating. The revision came after hosting CFO Jim Lee and other executives for a meeting, where discussions indicated that the company's strategic reset is showing early positive results.

Recommendation Change

• Previous Price Target: $140
• New Price Target: $161
• Rating: Buy
• Potential Upside: Approximately 15% from the previous close

Analyst Rationale

Jefferies analysts believe Target's restructuring efforts, including operational efficiency improvements and digital enhancements, are beginning to pay off. The meeting with management reinforced confidence in the company's ability to deliver sustainable earnings growth, especially with improving margins and lower inventory.

Context

The upgrade comes amid inflationary pressures and shifting consumer behavior. However, analysts remain divided; while Jefferies sees a buying opportunity, others remain cautious due to intense competition from Walmart and Amazon. TGT stock has risen about 8% over the past month.

What to Make of It

The price target hike reflects cautious optimism in Target's new strategy, but investors should watch next quarter's results to confirm sustained improvement. This is not a buy or sell recommendation.