Target (TGT) Stock Forecast & Price Target

Target has demonstrated robust growth in its digital sales, particularly through same-day services, which increased by over 25% in the latest quarter, indicating strong consumer engagement in its digital offerings. The firm saw a 1.5% rise in comparable sales, driven by a 2.1% increase in traffic, showcasing Target's ability to attract customers even in a cautious economic environment. Additionally, with expectations of modest EBIT margin expansion in 2025 and a notable increase in digital channels, Target is positioned favorably for continued financial growth.

Target has experienced a sequential decline in card penetration, dropping 10 basis points, which follows a notable 30 basis point decrease in the previous quarter, signaling potential challenges in customer loyalty. The retail gross margin for the company declined to 26.2%, a 40 basis point year-over-year decrease, primarily driven by increased digital fulfillment costs and higher promotional markdown rates, indicating pressure on profitability. Additionally, Target anticipates a year-over-year sales decline in the first quarter, coinciding with weakening consumer confidence and ongoing struggles in discretionary spending, further contributing to a negative outlook on the company's stock performance.