Target Shares Rise as Multiple Analysts Raise Price Targets

Target Corp. shares rose on Friday after multiple analysts raised their price targets on the stock following the retailer's better-than-expected second-quarter results.

Target shares are challenging resistance levels. What is driving TGT to record levels?

Target Beats Expectations and Raises Full-Year Guidance

Target shares climbed to a 52-week high on Friday after the retailer's second-quarter results beat Wall Street expectations, prompting management to raise its full-year outlook. Revenue reached $26.54 billion, up 5.3% year-over-year, well above the analyst estimate of $26.14 billion.

Operating income nearly doubled, rising from $1.32 billion to $2.56 billion, with operating margin expanding from 5.2% in the same period last year to 9.6%, while gross margin jumped from 29% to 33.7%, with tariff benefits contributing 3.7 percentage points.

The combination of sales growth and margin expansion gave Target enough confidence to raise its full-year outlook. Management now expects full-year sales growth of approximately 5% and an operating margin of 6%, and raised its full-year sales guidance from $108.97 billion to $110.02 billion, exceeding the Wall Street estimate of $109.1 billion.

Analysts Raise Price Targets Following the Report

The combination of results and raised guidance quickly reflected in analyst commentary. Target holds an overall Buy rating on Wall Street with an average price target of $163.25, and multiple analysts raised their price targets after the report. Telsey Advisory Group maintained an Outperform rating and raised its price target to $182. Citigroup maintained a Neutral rating while raising its price target to $160, and Goldman Sachs also maintained a Neutral rating while raising its price target to $161.

Guggenheim's Robert Heinbockel said uncertainty surrounding Target's turnaround has faded, but noted the stock's valuation now more closely resembles a stable long-term grower, which could limit near-term upside after a 60% gain since late 2025.

JPMorgan's Christopher Horvers pointed to real improvements in Target's merchandising and customer experience, but maintained a Neutral rating given caution on margins and future comparable sales growth.

TGT Shares Rise

TGT price action: Target shares closed up 3.61% on Friday at $163.96. The stock is trading at 52-week highs.