On Wednesday, June 4, TD Cowen analysts began coverage of Target Corporation (NYSE:TGT), giving it a “Hold” rating and setting a price target of $105.

The analysts noted that the company’s strong core business is supported by innovative and exclusive products. They also highlighted Target Corporation’s (NYSE:TGT) digital fulfillment strategies, which are profitable and have potential for scaling. The analysts pointed out that the company has a 5-year revenue compound annual growth rate (CAGR) of 6.4%, higher than Walmart’s 5.4%.

A woman purchasing groceries at a Target store, with a cart full of products.

Despite this, TD Cowen analysts noted some challenges that Target Corporation (NYSE:TGT) is facing in the near term. These include pressure from competitors on comparable sales and cost inefficiencies that are anticipated to continue throughout the year.

The analysts mentioned tariffs and lower consumer confidence as factors contributing to the company’s current challenges. They pointed out that these could affect Target Corporation’s (NYSE:TGT) performance in the short term.

While we acknowledge the potential of TGT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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