RBC Reduces Target (TGT) Valuation After In-Line Results and Updated Model

Target Corporation (NYSE:TGT) is included among the 15 Blue Chip Dividend Stocks to Build a Passive Income Porfolio.

On November 20, RBC Capital’s Steven Shemesh lowered the firm’s price target for Target Corporation (NYSE:TGT) to $99 from $107 while keeping an Outperform rating. The company’s results were largely in line with expectations. The firm noted that some of the initiatives discussed on the call could help Target return to growth, although the road ahead ‘seems long’ and the level of reinvestment required is still unclear.

Target Corporation (NYSE:TGT) has been dealing with several challenges over the past few years. More recently, the retailer has been affected by customers cutting back on discretionary purchases. Inflation remains elevated, and as a discount-oriented retailer, much of the company’s audience is focusing on essential items at a time when the company’s core categories, such as housewares and apparel, are not considered everyday necessities.

In October, the company also announced plans to eliminate 1,800 corporate jobs as it works to regain growth after roughly four years of stagnant sales.

There are still some positive developments. In the third quarter of 2025, digital sales continue to perform well, with digital comparable sales rising 2.4%, supported by a 35% increase in same-day services linked to Target’s membership program. Target Corporation (NYSE:TGT) also remains a reliable dividend payer. It has increased its dividends for 54 consecutive years.

Target Corporation (NYSE:TGT) is a large American retailer that sells a wide variety of items, including groceries, clothing, electronics, and household goods, through its physical stores and online platform.

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Disclosure: None.