Why DA Davidson Thinks Target (TGT)’s Turnaround Case Deserves a Higher Valuation

Target Corporation (NYSE:TGT) is one of the stocks most affected by inflation.

On March 9, 2026, DA Davidson analyst Michael Baker maintained a Buy rating on Target and raised his price target to $140 from $120. Public summaries of the note said the new target was based on 16 times the firm’s 2027 EPS forecast, a multiple DA Davidson said was in line with Target’s five-year and ten-year average valuation ranges.

The call context matters here. At Target’s March 3, 2026, financial community meeting, Baker directly challenged management on why the turnaround push was coming now, despite largely the same leadership team, effectively pressing executives on why investors should believe the reset was real this time.

CEO Michael Fiddelke answered that management had taken a candid look at what was not working, while also pointing to a leadership bench that was partly refreshed, saying more than half the leadership team was either new to the role or new to Target in the prior 18 months.

Target Corporation (NYSE:TGT) is a U.S. big-box retailer selling merchandise across categories including apparel, beauty, essentials, home, and food through its stores and digital channels.

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