Target Corporation (NYSE:TGT) is one of the The best undervalued stocks to buy according to financial media. On May 21, DA Davidson analyst Michael Baker raised his price target on the company’s shares to $155 from $140 and maintained a “Buy” rating on the stock. Target Corporation’s (NYSE:TGT) first-quarter results reflect the first signs of a potentially strong retail recovery story, according to the analyst. This is supported by renewed merchandise excellence and improved operations.
Target Corporation (NYSE:TGT) reported net sales of $25.4 billion in the first quarter of 2026, reflecting a 6.7% increase compared to the prior year, amid a 6.4% increase in merchandise sales and 24.6% growth in non-merchandise sales. In the first quarter of 2026, capital expenditures totaled $1.0 billion, representing 31% growth over last year, primarily due to increased investments in new stores and store remodels.
For fiscal 2026, the company expects net sales growth of ~4% year-over-year, which implies an increase of 2 percentage points compared to the previous range.
Target Corporation (NYSE:TGT) operates as a general merchandise retailer.
While we recognize TGT’s potential as an investment, we believe certain AI stocks offer greater growth potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.
READ NEXT: The 10 Best Consumer Goods Stocks to Invest in According to Analysts and the 11 best long-term tech stocks to buy according to analysts.
Disclosure: None. Follow Insider Monkey on Google News.