Target Corp.
Target shares climbed to a fresh 52-week high Friday after the retailer posted second-quarter numbers that surpassed Wall Street's bar and prompted management to lift its outlook for the rest of the year. The top line came in at $26.54 billion, up 5.3% from a year ago and comfortably past the $26.14 billion analysts had penciled in.
Operating income nearly doubled to $2.56 billion from $1.32 billion, pushing the operating margin up to 9.6% from 5.2% a year ago, while gross margin jumped to 33.7% from 29%, with the tariff windfall contributing 3.7 percentage points of that gain.
That combination of stronger sales and wider margins gave Target enough confidence to raise its full-year outlook. Management now projects roughly 5% sales growth for the year alongside a 6% operating margin and bumped full-year sales guidance up to $110.02 billion from $108.97 billion, topping the $109.10 billion the Street had modeled.
Analysts Raise Price Targets Following the Report
That combination of results and raised guidance quickly showed up in analyst commentary. Target carries an overall Buy rating on Wall Street, with an average price target of $163.25, and several analysts raised their targets following the report. Telsey Advisory Group kept an Outperform rating and raised its target to $182. Citigroup maintained a Neutral rating while raising its target to $160, and Goldman Sachs also stayed Neutral while lifting its target to $161.
Guggenheim's Robert Heinbockel said the uncertainty around Target's turnaround has faded, though he flagged that the stock's valuation now more closely resembles a steady long-term grower, which could limit near-term upside after shares climbed 60% since late 2025.
JPMorgan's Christopher Horvers pointed to genuine improvement in Target's merchandising and customer experience, though he kept a Neutral rating amid caution over margins and future comparable sales growth.
TGT Shares Are Rising
TGT Price Action: Target shares were up 3.61% at $163.96 at the time of publication on Friday. The stock is trading at a new 52-week high, according to Benzinga Pro.
