Target Q2: Better Than Feared, But CEO Transition Weighs On Sentiment

Target stock is attractively valued, with a 4.6% dividend yield, depressed multiples, and potential turnaround levers that can provide double-digit annualized returns over five years. Sales and traffic remain weak but are showing sequential improvement; digital and non-merchandise sales are leading growth, supporting TGT's $15B five-year sales growth plan. Skepticism surrounds the CEO transition, but deep company knowledge and digital strategy experience could aid the ongoing turnaround and margin recovery.