• RBC Capital has upgraded NYSE:TGT to "Outperform" and adjusted the price target from $107 to $99 amidst Target's challenging quarter and revised full-year earnings forecast.
• Target faces significant near-term challenges, including a contraction in comparable sales and profitability issues, leading to a revised EPS outlook of $7 to $8.
• Despite a 35% decline in stock price this year, Target is making strategic investments in technology and expanding its store footprint to drive recovery and growth.

On November 20, 2025, RBC Capital adjusted its rating for Target Corporation (NYSE:TGT) to "Outperform," with the stock priced at approximately $85.83. RBC Capital also revised its price target for Target, lowering it from $107 to $99. This adjustment comes amid significant challenges for Target, including a disappointing third-quarter performance and a reduction in its full-year earnings forecast.

Target is currently in a deep-value territory, offering a projected 5% dividend yield. However, this yield may not be enough to attract investors due to the company's near-term challenges. Target's comparable sales contracted more than expected, and markdowns have hurt profitability. The company has adjusted its full-year earnings per share (EPS) outlook to a range of $7 to $8, reflecting the impact of a cooling job market and inflation.

The stock has declined nearly 35% this year, contrasting with the S&P 500's 13% rise. Target's softness in categories like apparel and home goods is concerning, especially compared to competitors like TJX, which has raised its full-year outlook. Investors are closely watching the transition to incoming CEO Michael Fiddelke, who is tasked with steering the company towards recovery.

Despite these challenges, Target has made strategic investments in technology, such as AI-enabled consumer insights and the Target Trend Brain, to enhance merchandising and predict consumer trends. The company has seen a 35% growth in digital sales, particularly in same-day delivery services, and improved inventory management with a 150-basis-point improvement in on-shelf availability for top items.

Target is also expanding its store footprint with new larger format stores that are exceeding sales expectations. To enhance the guest shopping experience, Target is investing in store remodels and digital tools to improve efficiency and customer interaction. As of now, Target's stock is priced at $86.37, with a market capitalization of approximately $39.25 billion and a trading volume of 2,993,855 shares.