Overview

• Target shares are roughly 70% below their November 2021 record close of $238.01 and recently traded near $88, valuing the stock at about 12 times forward earnings with a forward yield around 5.2%.
• Second-quarter 2025 results showed a 0.9% decline in sales and a 1.9% drop in same-store sales, reflecting continued weakness in discretionary categories.
• The company has increased its dividend for 54 consecutive years, maintaining its status as a Dividend King.
• Gross margin recovered from a 2022 low to 28.2% in fiscal 2024 as the chain continued to grow its footprint to 1,978 U.S. stores.
• Commentary cites inflation, tariffs, inventory and shrink issues, competitive pressure, and politically driven boycotts as ongoing risks that could justify the discounted valuation even as it outlines a turnaround argument.