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Citi Keeps Neutral Stance on Target (TGT), Cuts PT

On May 22, Citi analyst Paul Lejuez lowered the firm’s price target on Target Corp. (NYSE:TGT) to $94 from $97, keeping a Neutral rating on the shares.

The downgrade came in response to the company’s weaker-than-expected fiscal Q1 2025 results reported on May 21. Management lowered the company’s guidance for fiscal year 2025, which, according to the analyst, suggests that weak sales trends observed in Q1 are expected to continue.

A woman purchasing groceries at a Target store, with a cart full of products.

Target Corp. (NYSE:TGT) reported net sales of $23.8 billion, compared with $24.5 billion in 2024. Comparable sales dropped 3.8% in fiscal Q1 2025, with a 5.7% decline in comparable store sales. Management now expects a low-single-digit decline in sales for fiscal 2025, along with a GAAP EPS of $8.00 to $10.00. Adjusted EPS is anticipated to be in the $7.00 to $9.00 range.

The analyst told investors in a research note that the lower fiscal 2025 guidance “seems to provide cushion” after a weak quarter, with higher-than-planned apparel and home inventories and a loss in market share in more than half of the company’s 35 categories. However, the firm believes the earnings guidance has not been “derisked.”

The analyst opined that Target’s (NYSE:TGT) gross margin pressure is likely to extend to H2 2025 since it is dealing with headwinds “that may not be quick to improve.”

While we acknowledge the potential of TGT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TGT and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 10 Best Debt Free IT Penny Stocks To Buy and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None.

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Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

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  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
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