Wolfe Research Sees Regional Gaps in Target’s (TGT) Holiday Performance

Target Corporation (NYSE:TGT) is included among the 10 Cash-Rich Stocks to Buy Now.

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On December 23, Wolfe Research analyst Spencer Hanus told investors that the firm’s checks show Walmart continues to outperform Target Corporation (NYSE:TGT) across most trade areas. Target has delivered solid seasonal merchandise execution in a few markets, including Northern New Jersey, but performance has been uneven. Results appear weaker in areas closer to Philadelphia. A recent outage affecting Target’s website and mobile app, along with regional distribution disruptions, led Wolfe to cut its Q4 same-store sales estimate by 25 basis points. The firm noted that it did not observe any immediate out-of-stock issues tied to those disruptions. Wolfe continues to rate the shares Underperform with an $81 price target.

On December 26, the Financial Times reported that activist investor Toms Capital Investment Management made a significant investment in Target Corporation (NYSE:TGT). The move adds pressure on a retailer that has lagged its peers for several years. The size of the stake was not disclosed, and the report did not specify any particular demands from the New York–based firm.

Target shares are down more than 27% since the start of 2025. In August, the company appointed long-time executive Michael Fiddelke to help revive growth as household budgets remain strained and tariff uncertainty weighs on demand. To address investor concerns and reenergize the business, the company announced plans to spend an additional $1 billion in 2026 on new store openings and remodels. The company operates nearly 2,000 stores and has also cut 1,800 corporate roles as part of a broader restructuring.

The investment by TCIM is not Target’s first experience with activist pressure. In 2009, the company fought a high-profile proxy battle with Pershing Square’s Bill Ackman, who pushed for board seats and a real estate spin-off during a period of declining profits.

Target Corporation (NYSE:TGT) is a major US retailer, offering a wide range of affordable, trend-focused merchandise and groceries. Its assortment spans clothing, electronics, home goods, and food, sold through large-format stores and digital channels.

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