12:44 PM EDT, 08/21/2025 (MT Newswires) -- Target's ( TGT ) bottoming process is "closer to being finished than beginning" based on the company's recent topline and margin trends, Morgan Stanley said in a Thursday note.

"We believe Target's ( TGT ) risk/reward is attractive even though its current transformation is in early stages, and EPS may not have bottomed yet," said Morgan Stanley. However, incoming CEO Michael Fiddelke could decide to make investments that would set the business back temporarily for better growth positioning in the future, the investment firm noted.

According to Morgan Stanley, Fiddelke already had a substantial influence over the company's 2025 outlook but his direction once formally in the job could lead to an "earnings reset."

Morgan Stanley maintained its overweight rating and $112 price target on Target ( TGT ) stock.

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