Skip to Content

Target Corp - Stock Quote TGT

Rating as of

Morningstar's Target Corp Stock Analysis

Currency in USD
Is it the right time to buy or sell?
Is it the right time to buy or sell?

1-Star Price


5-Star Price


Economic Moat


Capital Allocation


Excess Inventory to Hold Target’s Near-Term Earnings in Check, but Our Long-Term View Is Intact

Zain Akbari, CFA Equity Analyst

Analyst Note

| Zain Akbari, CFA |

Our $171 per share valuation of no-moat Target should dip by a low- to mid-single-digit percentage after it disclosed that ongoing inventory mismatches should pressure near-term results to a greater extent than initially expected. Citing markdowns, removal and storage of excess inventory, and high costs, management reduced its guidance. The firm’s leadership now foresees operating margins around 2% in the second quarter and a roughly 6% second-half mark, down from around 5.3% and an implied mid- to high-single-digit level, respectively. Our 5% second-quarter margin forecast should fall in line with management’s new goal, with little change to our second-half assumption (already just short of 6%). 

Unlock Our Full Analysis With Morningstar Investor

Target Corp's Company Profile

Business Description

With 1,926 stores (as of the end of fiscal 2021), Target is a leading American general merchandise retailer, offering a variety of products across several categories, including beauty and household essentials (26% of fiscal 2021 sales), food and beverage (19%), home furnishings and décor (19%), hardlines (18%), and apparel and accessories (17%). Most of Target’s stores are large, averaging more than 125,000 square feet. The company has a significant e-commerce presence, deriving around 19% of sales from the channel (up from about 9% in fiscal 2019, before the pandemic). In addition to its namesake stores, Target owns Shipt, an online same-day delivery platform. After it exited Canada in 2015, virtually all of Target’s revenue is generated from the United States.

1000 Nicollet Mall
Minneapolis, MN, 55403
T +1 612 304-6073
Sector Consumer Defensive
Industry Discount Stores
Most Recent Earnings Apr 30, 2022
Fiscal Year End Jan 29, 2023
Stock Type Aggressive Growth
Employees 450,000

Target Corp's Related News