Bank of America Raises Target Price Target to $141
Bank of America lifted its price objective for Target while trimming its third-quarter earnings forecast on weaker margins and higher costs.
Updated on Nov. 9, 2026 in Retail
Bank of America raised its price objective for Target Corp to $141 from $140, while cutting its third-quarter earnings per share forecast by $0.09 to $2.08. The firm cited expected weaker gross margins and higher selling, general and administrative expenses.
Why it matters
The revision reflects a more difficult retail operating environment, with tougher year-on-year comparisons, higher freight costs and increased promotional activity across the sector. Target must keep investing to sustain sales growth, which pressures near-term profitability.
Bank of America's analysis values Target at 15 times estimated earnings and forecasts 2027 earnings of $9.40 per share, below the market consensus of $9.65. The estimates are forward-looking and do not reflect reported results.
The players
Target Corp
Target Corp is a major U.S. general merchandise retailer known for its discount stores and in-house brands.
Bank of America
Bank of America is one of the largest U.S. banks, whose research division publishes equity analyst coverage on public companies.
Walmart
Walmart is the largest U.S. retailer by revenue and Target's principal competitor across general merchandise and groceries.
The details
Bank of America attributed Target's sales improvement this year to merchandising initiatives and stronger performance in food, entertainment and beauty. Food and beverages make up 23% of sales, entertainment and discretionary goods 15%, beauty 13%, household essentials 17%, and apparel and home 15% each.
Timeline
This year: Target's sales improved, supported by merchandising initiatives.
Third quarter: Bank of America's revised EPS forecast of $2.08 applies.
2027: Bank of America expects sales to slow and cost pressures to rise, with earnings below consensus.
Market Landscape
Bank of America notes that Walmart has strengthened its apparel position over the past five years, a shift that intensifies competition for Target's discretionary categories. The broader retail sector faces tougher year-on-year comparisons and rising promotional activity.
For shoppers, the analysis points to continued pressure on Target's margins, which could shape future pricing and promotions on food, beauty and household goods. Consumers comparing discount chains may see competitive shifts in apparel as Walmart strengthens its position.
The takeaway
Retail earnings forecasts are increasingly sensitive to margins and promotional intensity, so shoppers and investors alike should watch how chains balance price competition against profitability. Monitoring quarterly comparable sales alongside margin guidance offers a clearer picture of each retailer's health.
Further reading
For more on how big chains are navigating shifting shopper demand, see Retail.
