TGT Stock Has Rallied Over 50% This Year: Why Does TD Cowen See More Upside For The Retail Giant?

• TD Cowen raised Target’s price target to $155 from $130 but kept a Hold rating. 
• The firm expects Q2 sales growth to beat Wall Street estimates.
• Target reports earnings August 19, with analysts expecting $26 billion in revenue and $2.30 EPS. 

Target Corp. (TGT) stock is rising premarket Tuesday as investors weigh TD Cowen’s higher price target ahead of the retailer’s second-quarter (Q2) earnings report next week. The firm pumped up its price target to $155 from $130 while maintaining a ‘Hold’ rating, noting that shares have already gained about 50% in 2026 and expectations remain high. 

Expectations Rise Ahead Of Results

TD Cowen said it expects Target’s second-quarter sales to grow more than the roughly 2% Wall Street forecast, despite Target management taking a more cautious view of the quarter. 

The firm’s $155 price target suggests about 2% upside from the stock’s latest closing price. The analyst said investor expectations have become demanding following the stock's strong performance this year. As the market has increasingly embraced the retailer's recovery story, the current share price appears to reflect a meaningful portion of that improvement.

Target is slated to report Q2 earnings on August 19, with analysts expecting $26 billion in revenue and earnings of $2.3 per share, according to Fiscal Ai data. Target stock traded over 1% higher in Tuesday’s premarket. 

Analysts See Progress In Target’s Turnaround 

Last week, UBS raised its price target for Target to $166 from $144 and kept a ‘Buy’ rating. The firm expects Target’s Q2 results to show that its turnaround plan is making progress, with steady improvements in the business.

Evercore ISI analyst Greg Melich also raised his price target for Target to $150 from $135 while keeping an ‘In Line’ rating on the stock. 

Target stock’s gains have been helped by improving business performance and stronger store traffic. The company has worked through earlier problems with excess inventory and weaker profit margins. Target has improved inventory management, strengthened its online and in-store shopping experience, and expanded its higher-profit private-label products.

Additionally, Target’s recovery has been supported by its reliable dividend and efforts to reduce costs. The company’s higher 2026 earnings outlook and tighter spending have helped improve profit margins, giving investors more confidence that profits can grow even if sales rise slowly.

TGT Stock: Retail Sentiment Turns Bearish

However, on Stocktwits, retail sentiment around the stock turned to ‘bearish’ from ‘neutral’ territory the previous day. 

TGT stock has gained 46% in the last twelve months. 

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