Target (TGT) stock has been nothing short of a blockbuster performer in 2026, but a senior HSBC analyst believes its rally is not out of steam yet. In a research note this morning, Joe Thomas upgraded TGT to “Buy” and raised his price target as well to $190, indicating potential upside of another 22% from current levels.
HSBC’s bullish call is significant given Target shares are already up more than 60% year-to-date.
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www.barchart.comWhy HSBC Upgraded Target Stock Today
Thomas remains bullish on TGT shares mostly because the retailer’s Q2 earnings, featuring a 3.8% comparable sales growth, position it to “comfortably surpass our expectations.”
The company’s two-year same-store sales growth currently sits at 1.7% and requires “only 0.5% two-year growth in the second half to deliver our full-year assumptions, he told clients.
The analyst sees Target pushing higher from its current price, particularly because it’s now seeing consistent sales across income demographics.
A healthy 2.96% dividend yield makes the department store chain even more attractive as a long-term holding in late 2026, he added.
TGT Shares Are Attractively Priced in 2026
Beyond retail, policy tailwinds and aggressive reinvestments into the core business make up for other reasons to invest in Target stock.
According to the HSBC analyst, the Supreme Court’s recent decision to strike down President Donald Trump’s tariffs could mean nearly $1 billion in refunds for the retail giant, immediately bolstering its liquidity.
Plus, management’s $2 billion capital injection aimed at “elevating the in-store guest experience,” combined with an improved marketing playbook, is expected to drive sustained foot traffic back to TGT’s brick-and-mortar locations, he told clients.
Target is currently trading at a forward price-to-earnings (P/E) ratio of nearly 18x only, which makes it significantly cheaper to own than rival Walmart (WMT).
Wall Street Remains Bullish on Target
Crucially, HSBC is far from alone in keeping constructive on TGT stock despite its explosive year-to-date run.
According to Barchart, the consensus rating on Target sits at “Moderate Buy,” with the mean price target of about $164 suggesting more than 5% upside potential through the remainder of 2026.
www.barchart.com On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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