Target: AI-Driven Turnaround


  • Target has faced challenges, including political backlash, shrinkage, and declining same-store sales, but has successfully navigated competition from e-commerce.
  • Target is using AI to improve customer experience and operational efficiency, with a GenAI-powered chatbot rollout planned for later this year.
  • I believe Target’s stock is undervalued with a forward P/E ratio below the sector median, presenting a compelling investment opportunity if operational challenges are addressed.

Target Announces Its Cutting Prices On Many Frequently Purchased Items

Joe Raedle/Getty Images News

Investment Thesis

Target (NYSE:TGT) has faced significant challenges over the past two years, including political headwinds, shrinkage, and declining same-store sales. Despite these adversities, Target has successfully navigated one of retail’s largest threats: competition from online ecommerce and Amazon (

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Noah Cox (account author) is the managing partner of Noah’s Arc Capital Management. His views in this article are not necessarily reflective of the firms. Nothing contained in this note is intended as investment advice. It is solely for informational purposes. Invest at your own risk.

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