Target (TGT) Stock Falls for Third Straight Day as Turnaround Doubts Grow

TLDR

• Target stock is down more than 5% Monday, its biggest single-day drop since August.
• The stock has fallen nearly 9% over three straight days, its worst such stretch in over a year.
• A Washington Post article questioned whether new CEO Michael Fiddelke can revive the retailer.
• Barclays reiterated an Underweight rating with a $115 price target, below the current trading level.
• Earnings are due May 20, with EPS consensus at $1.39 for the quarter.

Target (TGT) stock dropped more than 5% on Monday, marking its third straight day of losses. Over those three days, the stock has shed nearly 9% — its worst three-day run in more than a year.

Target Corporation, TGT

The stock was trading around $118.60 at recent check. Despite the recent slide, TGT is still up more than 20% year to date, outpacing much of the retail sector and the S&P 500.

The selling pressure picked up after the Washington Post published a piece Monday morning questioning whether CEO Michael Fiddelke can bring back Target’s “magic.” The article cited skeptical analysts who worry that Fiddelke, a company veteran, may not bring the fresh outside perspective needed to turn things around.

That kind of headline at a sensitive moment tends to stick.

The same day, Barclays analyst Seth Sigman reiterated his Underweight rating on the stock with a $115 price target. That sits below where the stock is currently trading, which doesn’t help sentiment.

In other words, the low-hanging fruit may already be picked.

Earnings Pressure Building

Target’s next earnings report is scheduled for May 20, and some investors appear to be getting cautious ahead of that print. Wall Street’s consensus calls for earnings per share of $1.39 in the quarter, a rise of just over 6%.

For the full fiscal year, EPS is expected to come in at $6.03, also up around 6%.

The stock has been in a rough stretch for years. TGT has lost roughly half its value since its late-2021 highs, weighed down by disappointing sales, slow store traffic, and consumer gripes about messy aisles and uninspiring products.

Consumer Backdrop Adding Pressure

Beyond the company-specific noise, broader retail concerns are also in the mix. Consumer sentiment has been hitting multi-year lows, and gas prices hovering around $4.55 a gallon are putting pressure on Target’s core middle-income shoppers.

Data showing drops in purchase intent and brand loyalty has added to the unease. Even with store traffic holding relatively steady, those softer signals are giving investors reason to pause.

The year-to-date rally of more than 20% had some on Wall Street wondering if expectations had gotten ahead of reality. Monday’s move suggests some of that optimism is being walked back.

Barclays’ $115 price target remains below the current trading level, with the Underweight rating still in place heading into earnings on May 20.

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