Target Corporation (NYSE:TGT) stock fell Thursday after the company reported third-quarter adjusted earnings per share of $1.78, beating the analyst consensus estimate of $1.72.
At the same time, the big-box chain is leaning into an attention-grabbing artificial intelligence push, wiring its aisles into ChatGPT through an expanded OpenAI partnership.
Target tightened its 2025 adjusted EPS outlook to $7.00–$8.00, down from $7.00–$9.00 and below the $7.36 consensus estimate.
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For the fourth quarter of 2025, the company said it is maintaining its expectation of a low-single-digit decline in sales.
Analyst’s Take
Telsey Advisory Group analyst Joseph Feldman reiterated the Market Perform rating on the stock, with a price forecast of $110.
Feldman noted that Target shares were down in premarket trading after mixed third-quarter results and guidance.
He said the broader economy still pressures consumers, particularly on discretionary spending categories.
According to Feldman, incoming CEO Michael Fiddelke aims to boost sales and efficiency by sharpening merchandising and stores.
He believes those efforts, including greater use of technology, could pay off over time but require investor patience.
The analyst expects the company’s same-store sales to fall 2.1% in 2025. For 2026, it is expected to grow by 1.5%.
For 2025, Feldman expects the company to report EPS of $7.48.
Price Action: TGT shares were trading lower by 2.47% to $86.22 at last check Thursday.
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