Target's (TGT) recent investments in merchandising and operations are starting to connect with consumers despite a tougher macro backdrop, RBC Capital Markets said Thursday in a report.
Pre- and post-analytics allow the company to isolate the impact of assortment changes in stores, with traffic gains showing up broadly across demographics rather than in isolated pockets, a signal of more durable recovery, RBC reported after meeting with Target executives.
Top priorities include improving inventory reliability and boosting supply-chain efficiency through AI-driven allocation logic, the report said. RBC said it expects 2027 adjusted EPS of $9.59, compared with the market consensus of $8.96.
RBC reiterated its outperform rating on the stock with a price target of $153 per share.
Price: $135.58, Change: $+2.94, Percent Change: +2.22%