Target: Consistency is the TGT

Research evidence excerpt

Target: Consistency is the TGT

Deutsche Bank

Research

Rating Company Date

Hold Target 21 May 2026

North America Reuters Bloomberg Rating Hold

United States TGT.N TGT US Price target (USD) 126.00 Price at 20 May 26 122.33

52-week range 132.10 – 83.68

Consumer

Retailing / Department Stores Valuation & Risks

& Broadlines

Consistency is the TGT

Krisztina Katai

TGT delivered a good 1Q print, with the strongest SSS growth in 4 years driving Research Analyst

+1-212-250-0590 a ~20% EPS beat vs. consensus (although we think EPS was closer to the buy-

side). However, margin flow-through was more limited, led by SG&A investments, Jessica Taylor

and management commentary was more guarded on 2Q (recall, the Nintendo Research Associate

Switch launch last June added ~100 bps to SSS). In our view, while the print lends +1-212-250-3165

incremental support to the early stages of TGT’s turnaround, we believe investor

Nick Breckenridge focus remains squarely on the durability of the comp inflection. Notably, the last Research Associate

period of similar SSS growth coincided with stimulus-driven demand. +1-212-250-9179

Encouragingly, early reads on strategic initiatives are positive, particularly around

assortment refinement and in-store experience enhancements. However, we

would highlight that the bulk of TGT’s transformation remains ahead, with several Key changes

large-scale initiatives still in early innings, including: 1) a broad-based center- Price target (USD) 123 126 2%

store food reset; 2) a multi-year remerchandising effort in Home; and 3) the rollout

Source: Deutsche Bank

of Target Beauty Studio starting in late August.

In our view, these initiatives represent a meaningful opportunity to drive

sustained traffic and basket improvement, but also introduce execution risk,