HSBC Upgrades Target Stock to Buy, Sets $190 Price Target on Strong Sales and Tariff Relief

HSBC analyst Joe Thomas upgraded Target shares to buy from hold and raised his price target to $190 from $125, implying roughly a 20% upside from the current price. Thomas praised the retailer’s second‑quarter results as “stand‑out,” citing a 3.8% increase in comparable sales and a 2.7% rise in store‑originated sales. He also highlighted consistent performance across income demographics, noting a year‑to‑date comparable‑sales growth of 1.7% and projecting that a modest 0.5% two‑year growth in the second half would allow Target to comfortably exceed expectations. Beauty, food and beverage, and household essentials showed notable recoveries, while back‑to‑school apparel grew in double digits, indicating that overall store traffic remains robust. A recent Supreme Court ruling that struck down a large portion of President Donald Trump’s tariffs could result in a $994 million refund for Target. HSBC also pointed to Target’s $2 billion incremental investment to elevate the in‑store guest experience as part of its recovery program aimed at increasing foot traffic. While the broader analyst community remains divided—24 of 39 reviewers rate the stock a hold, three assign an underperform, and the remaining 12 have buy or strong‑buy ratings—Target shares are up 62% this year and are on pace for their best annual performance since 2019, when the stock jumped 94%.

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