11:37 AM EDT, 08/20/2025 (MT Newswires) -- Target ( TGT ) remains challenged amid the promotion of its chief operating officer to the role of chief executive, Truist Securities said in a note Wednesday.

"While 2Q sales were a touch better than initially expected and earnings came in-line with the bar that was reset last qtr, it is hard to envision a turnaround for the co any time soon," the report said.

Target ( TGT ) is focusing on cost cuts to back its EBIT amid declining market share, and is benefitting from shrink reductions which will fade in 2026, Truist said, adding that the firm no longer matches prices against major rivals.

"With all of these challenges, the co then decided to promote the next CEO from within, when we think it really needed to get a fresh perspective from the outside," the note said.

Target ( TGT ) said Wednesday its board has elected COO Michael Fiddelke to succeed Brian Cornell as chief executive from Feb. 1.

Truist has a hold rating on Target ( TGT ) and a $107 price target.

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