Morgan Stanley Raises Target (TGT) to $125, Reaffirms Overweight in Retail Sector Update

Target Corporation (NYSE:TGT) is included among the 15 Best High Yield Stocks to Buy.

On January 15, Morgan Stanley raised its price target on Target Corporation (NYSE:TGT) to $125 from $112, while sticking with an Overweight rating. The call was part of the firm’s broader 2026 outlook for hardline, broadline, and food retail names.

Target has also been picking up a lot more attention from investors lately. CNBC noted that during the week ending January 16, money flowed into a handful of retail stocks, and Target was one of the big beneficiaries. The buying pushed the stock into overbought territory, with an RSI of 80. Around the same time, Gordon Haskett upgraded Target to a Buy from Hold. Advisor Chuck Grom said the move was based on the combination of a fresh-start mindset and the search for contrarian opportunities, noting,

“In the spirit of both a new year/clean slate along with the never-ending search for contrarian ideas . . . we are upgrading Target to Buy-Rated from Hold-Rated — establishing a new $140 Price Target, which suggests over 30% upside from current levels.”

Target’s long-term track record is another reason it continues to stand out. For years, it has been one of the more profitable retailers in the group, consistently posting stronger gross and operating margins than many of its peers. The company’s continued investment in e-commerce and its efforts to strengthen the in-store experience have helped keep sales steady, while also supporting profits.

Even though Target is dealing with some short-term challenges, the balance sheet remains in good shape, which helps support its ongoing commitment to paying dividends to shareholders.

Target Corporation (NYSE:TGT) is a major general merchandise retailer, selling products through both its store network and its growing digital channels.

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Disclosure: None.