Overview
- Target shares are down nearly 40% since late 2024, trailing the S&P 500, according to recent investor analyses.
- Dana Telsey of Telsey Advisors said there is “a lot of work to do” as the retailer lags off-price rivals and Amazon.
- Income appeal is elevated with a roughly 4.3%–5.3% dividend yield after a 54th consecutive increase and a forward P/E near 11–12 times.
- Margins have compressed to about 3.7% as tariffs and costs bite, though interest coverage around 8× supports an investment‑grade balance sheet.
- An internal veteran of 23 years is set to take the CEO role in 2026, with merchandising, private labels and digital initiatives cited as levers, while some funds report buying on weakness.