Yahoo Finance Target Corporation Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year
Shareholders of Target Corporation (NYSE:TGT) will be pleased this week, given that the stock price is up 15% to US$174 following its latest full-year results. The result was positive overall - although revenues of US$107b were in line with what the analysts predicted, Target surprised by delivering a statutory profit of US$8.94 per share, modestly greater than expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Target after the latest results.
Check out our latest analysis for Target
Following last week's earnings report, Target's 30 analysts are forecasting 2025 revenues to be US$107.2b, approximately in line with the last 12 months. Per-share earnings are expected to rise 3.4% to US$9.27. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$106.7b and earnings per share (EPS) of US$9.09 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
The consensus price target rose 14% to US$178, suggesting that higher earnings estimates flow through to the stock's valuation as well. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Target, with the most bullish analyst valuing it at US$206 and the most bearish at US$132 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Target shareholders.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.2% by the end of 2025. This indicates a significant reduction from annual growth of 8.6% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 4.5% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Target is expected to lag the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Target following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Target analysts - going out to 2027, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 1 warning sign for Target you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
