<div id="readability-page-1">We came across a bullish thesis on Target Corporation on Max Dividends’s Substack by Serhio MaxDividends. In this article, we will summarize the bulls’ thesis on TGT. Target Corporation’s share was trading at $100.50 as of July 31st. TGT’s trailing and forward P/E were 11.04 and 13.83, respectively according to Yahoo Finance. <div id="attachment_1198779"><img src="https://imageproxy.pbkrs.com/https://imonkey-blog.imgix.net/blog/wp-content/uploads/2023/09/27183856/TGT-insidermonkey-1695854334391-768x430.jpg/query-YXV0bz1mb3J0bWF0JmV4cGlyZXM9MTc4NTYyODgwMCZmaXQ9Y2xpcCZoZWlnaHQ9MjY5JndpZHRoPTQ4MA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="830" height="465" original-src="https://imageproxy.pbkrs.com/https://imonkey-blog.imgix.net/blog/wp-content/uploads/2023/09/27183856/TGT-insidermonkey-1695854334391-768x430.jpg/query-YXV0bz1mb3J0bWF0JmV4cGlyZXM9MTc4NTYyODgwMCZmaXQ9Y2xpcCZoZWlnaHQ9MjY5JndpZHRoPTQ4MA"/>A woman purchasing groceries at a Target store, with a cart full of products.</div> Target Corporation (TGT), a Dividend King with 54 consecutive years of payout increases, is navigating one of its toughest periods in recent history. Its stock has declined over 30% year-to-date in 2025 due to soft consumer demand, inventory missteps, and heightened competition from Walmart and Amazon. Despite these challenges, Target remains a resilient income stock, boasting a 4.7% dividend yield and a low forward P/E of ~10–13.5. The company’s omnichannel strategy—including e-commerce, same-day services, and a $31 billion private-label portfolio—continues to show strength, with digital sales rising 4.7% in Q1. Meanwhile, over 100 million loyalty program members contribute to strong repeat purchase behavior. Target’s newly formed Enterprise Acceleration Office, launched in May 2025, is leading a transformation focused on AI-driven supply chain optimization, cost savings, and urban-format expansion. The company aims to add $15 billion in revenue over five years by strengthening high-frequency categories and leveraging partnerships like Ulta Beauty. While short-term earnings remain pressured—reflected in cautious 2025 EPS guidance and elevated inventory levels—Target still maintains a payout ratio below 60% and $8.4 billion in buyback capacity, signaling capital allocation discipline. With 86% institutional ownership, sentiment remains mixed, though its valuation appears compelling versus peers. Execution risk remains high, but if the turnaround succeeds, Target could offer both income stability and price appreciation. For long-term investors willing to look past near-term turbulence, Target presents a contrarian opportunity backed by a trusted brand, strong dividend heritage, and clear strategic direction—though patience and risk tolerance are essential. Previously, we covered a bullish thesis on Target Corporation (TGT) by LongYield in May 2025, which highlighted weak Q1 results, inventory challenges, and digital sales growth. The company’s stock price has appreciated by approximately 6.6% since our coverage. This is because digital strength and cost control offset some concerns. Serhio MaxDividends shares a similar view but emphasizes dividend resilience and turnaround potential. Target Corporation is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 62 hedge fund portfolios held TGT at the end of the first quarter which was 56 in the previous quarter. While we acknowledge the risk and potential of TGT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TGT and that has 10,000% upside potential, check out our report about this cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. Artificial intelligence is the greatest investment opportunity of our lifetime. 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Target Corporation (TGT) is facing challenges with a 30% stock decline in 2025 due to soft consumer demand and competition. However, it maintains a 4.7% dividend yield and a low forward P/E of ~10–13.5. The company is focusing on an omnichannel strategy and AI-driven supply chain optimization to boost revenue. Despite short-term pressures, Target's disciplined capital allocation and strong brand position it as a potential contrarian investment for long-term investors. The sentiment remains mixed among institutional investors, with a notable increase in hedge fund interest.

Target Corporation (TGT): A Bull Case Theory