Target Corp.

Equity Research 24 August 2026 | 5:00AM EDT

Target Corp. (TGT) Consumer perception is showing early signs of improvement, while trends remain below historical levels

TGT 12m Price Target: $161.00 Price: $165.44 Downside: 2.7% NEUTRAL Kate McShane, CFA | Goldman Sachs & Co. LLC

Emily Ghosh | Goldman Sachs & Co. LLC

In this note, we update our Target sentiment analysis, looking at Mark Jordan, CFA | social media sentiment and HundredX data over time following the Goldman Sachs & Co. LLC

boycott early last year. Overall, social media sentiment appears to be improving, while it largely remains below historical levels. Key Data _____________________________________ Market cap: $75.1bn Similarly, NPI and NPS are showing signs of recent improvement, Enterprise value: $84.7bn while both metrics continue to track below historical trends. Given 3m ADTV: $618.2mn United States the amount of change and investment Target spoke to at its March Americas Retail Specialty Hardlines, Supermarkets and Discount Stores Investor Day, we also continue to monitor the store for any changes M&A Rank: 3 to the floor, brands, and merchandising. GS Forecast __________________________________ 1/26 1/27E 1/28E 1/29E We remain Neutral on Target given that while the company faces Revenue ($ mn) 104,780.0 110,271.0 113,813.2 116,905.6 EBITDA ($ mn) 7,908.0 8,855.5 9,524.9 10,220.0 relatively easy compares in 2H26 and continues to execute on new EBIT ($ mn) 4,774.0 5,551.5 6,114.2 6,716.7

merchandising ideas, the competitive landscape remains EPS ($) P/E (X) challenging. In FY27, Target will likely be lapping the FY26 top-line EV/EBITDA (X) 7.1 9.6 8.7 7.9

benefit from tax refunds and new product ideas while keeping FCF yield (%) Dividend yield (%) certain higher costs, such as incremental labor costs and increased Net debt/EBITDA (X) 1.4 1.1 0.9 0.7

spend on merchandising and technology, likely putting its 7/26 10/26E 1/27E 4/27E longer-term earnings algorithm at risk. EPS ($)

GS Factor Profile ______________________________ Growth

Sentiment analysis Financial Returns

We partnered with GS Data Works to assess sentiment on social Integrated media around Target following the boycott early last year. Overall, we found that social media sentiment appears to be improving, Percentile 20th 40th 60th 80th 100th

while it largely remains below historical levels. TGT relative to Americas Coverage TGT relative to Americas Retail Specialty Hardlines, Supermarkets and Discou

Source: Company data, Goldman Sachs Research estimates. See disclosures for details.

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Goldman Sachs Target Corp. (TGT)

Target Corp. (TGT) Income Statement ($ mn) ___________________________________ NEUTRAL Rating since Apr 16, 2025 1/26 1/27E 1/28E 1/29E Total revenue 104,780.0 110,271.0 113,813.2 116,905.6 Cost of goods sold (75,511.0) (78,681.3) (80,894.4) (82,763.4) SG&A (21,878.0) (23,252.6) (23,929.1) (24,471.9) Ratios & Valuation __________________________________________ R&D -- -- -- -- 1/26 1/27E 1/28E 1/29E Other operating inc./(exp.) -- -- -- -- P/E (X) EBITDA 7,391.0 8,337.1 8,989.7 9,670.3 EV/EBITDA (X) 7.1 9.6 8.7 7.9 Depreciation & amortization (2,617.0) (2,785.6) (2,875.5) (2,953.6) EV/sales (X) 0.5 0.8 0.7 0.7 EBIT 4,774.0 5,551.5 6,114.2 6,716.7 FCF yield (%) 6.2 5.1 5.8 6.5 Net interest inc./(exp.) ( ) EV/DACF (X) Income/(loss) from associates -- -- -- -- CROCI (%) Others ROC (%) Pre-tax profit 4,425.0 5,195.2 5,759.9 6,362.4 Rent adj. net debt/EBITDAR (X) 1.8 1.4 1.2 1.0 Provision for taxes (974.0) (1,188.8) (1,267.2) (1,399.7) Net debt/EBITDA (X) 1.4 1.1 0.9 0.7 Minority interest -- -- -- -- Receivable days -- -- -- -- Preferred dividends -- -- -- -- Inventory days Net…