Target: Operation Sustained Results: Notes from TGT Sell Side Meeting

Research evidence excerpt

Target: Operation Sustained Results: Notes from TGT Sell Side Meeting

Deutsche Bank

Research

Rating Company Date

Hold Target 11 June 2026

North America Reuters Bloomberg Rating Hold

United States TGT.N TGT US Price target (USD) 126.00 Price at 10 Jun 26 127.98

52-week range 132.10 – 83.68

Consumer

Retailing / Department Stores Valuation & Risks

& Broadlines

Operation Sustained Results: Notes from

TGT Sell Side Meeting KrisztinaResearchKataiAnalyst

+1-212-250-0590

Earlier today, we attended a sell-side meeting with TGT leadership, including CEO

Jessica Taylor Michael Fiddelke and CFO Jim Lee. The tone from the top was constructive on Research Associate

the changes underway – with improving trends/traffic in categories where the +1-212-250-3165

assortment was refreshed (e.g. apparel; food/bev changes currently underway),

and speed with which management is executing against merchandising, store, Nick Breckenridge

Research Associate and operational targets. While there was no near-term commentary, management

+1-212-250-9179

pointed to a resilient consumer with no specifical callouts on the macro/elevated

gas prices. In addition, TGT is committed to maintaining its value gaps should the

pricing backdrop intensify. Lastly, TGT is chasing inventory in outperforming

categories (e.g. Fun 101, beauty), which indicates that inventory is in a good

position.

Will the Traffic Continue to Flow?

Despite solid performance in 1Q (+5.6% SSS) driven by +4.4% traffic, questions

remain surrounding the durability of the SSS inflection. In our view, management

has laid out and started executing on a turnaround story that starts with

merchandising authority. Merchants are laser focused on reestablishing boldness

through an edited assortment, with a clearly defined target customer (busy