Bank of America Initiates Coverage on Target with Underperform Rating

Analysts set $103 price target, pointing to potential 10% downside for the retailer's stock.

Feb. 27, 2026 at 2:21pm

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Bank of America has initiated coverage on shares of Target Corporation (NYSE: TGT), issuing an "underperform" rating and a $103 price target on the stock. The analysts' target price suggests a potential downside of 10.26% from the stock's current trading price.

Why it matters

This is a notable development as Target is one of the largest and most prominent retailers in the United States. Bank of America's underperform rating and lower price target could signal potential challenges ahead for the company, which may impact investor sentiment and the stock's performance.

The details

In their research report, Bank of America analysts cited concerns about Target's outlook, leading them to set an underperform rating and $103 price target on the stock. This contrasts with the average analyst price target of $106.72, suggesting potential downside for the retailer's shares.

  • Bank of America initiated coverage on Target shares on Friday, February 27, 2026.

The players

Target Corporation

A major U.S. general merchandise retailer headquartered in Minneapolis, Minnesota, operating a network of full-line and small-format stores across the country.

Bank of America

A multinational investment bank and financial services company headquartered in Charlotte, North Carolina.

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What’s next

Investors will be closely watching to see if other analysts follow Bank of America's lead in issuing more cautious ratings and price targets on Target. The company's upcoming financial results and guidance will also be closely scrutinized for any signs of potential challenges.

The takeaway

Bank of America's underperform rating and lower price target on Target could signal growing concerns about the retailer's outlook, potentially putting pressure on the stock and raising questions about the company's ability to maintain its strong performance in the face of a challenging retail environment.