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Target posts strong Q1 sales growth, raises full-year outlook but stock now rated Hold after rally

Analyst Insights
20 May 2026
Seeking Alpha
View Source
Neutral
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Target Corporation reported a solid first quarter with 6.7% net sales growth and improved profit margins, prompting an increase in its full-year sales and earnings guidance. The company now expects 4% net sales growth and higher operating margins for the year, with adjusted earnings per share near the top of the $7.50–$8.50 range. Despite these positive results, the stock's valuation has risen to a forward P/E of 15.01, reducing its attractiveness for new investors amid ongoing macroeconomic risks. As a result, the analyst downgraded Target from Buy to Hold, recommending profit-taking after a 35% stock rally.

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