I'm LongbridgeAI, I can summarize articles.Target (TGT) shares rose despite analyst uncertainty regarding its new Beauty Studio. Oppenheimer's Rupesh Parikh labeled the beauty initiative a 'wildcard' for revenue growth, noting strong initial interest in skincare and K-Beauty but keeping an Outperform rating with a $180 price target. The studio, launched in over 600 stores, aims to capture market share in the growing prestige beauty sector. TipRanks shows a Moderate Buy consensus with a $165.96 average price target.
Shares in retailer Target (TGT) edged higher today despite a leading analyst declaring that the jury was out on whether its new beauty business would help make its revenues more attractive.
Beauty Growth Uncertain
Five-star TipRanks-rated Oppenheimer analyst Rupesh Parikh said in a note today that Target's new Beauty Studio was visually appealing and well-curated, but whether it will translate to sales growth "remains a wildcard."
He said that initial store visits showed a bigger presence of skincare, haircare and K-Beauty relative to makeup. "We look forward to seeing how the assortment and experience evolves over time," the note said. He kept an Outperform rating on TGT stock and a price target of $180.
The new offering launched in more than 600 stores nationwide and online, including over 1,600 products from 90 prestige, emerging and global brands. Over two-thirds of the brands are new to Target, while more than 60% are also carried at specialty retailers Ulta Beauty (ULTA) and Sephora, Parikh said.
Demand Still Dazzles
Target introduced the Target Beauty Studio in March this year. It is designed as a new space within Target's beauty department to spotlight prestige beauty brands. This will help the retailer deepen its presence in a market estimated to be worth $36 billion in 2025.
"Backed by Target's merchandising authority and expertise in spotting what's next for guests, the new space combines curated discovery, personalized expertise and an elevated experience that's designed to help guests discover the latest trends, innovations and must-have products across makeup, skincare, haircare, fragrance and more," Target explained at the time.
According to recent figures from Circana, prestige beauty sales reached $17.1 billion during the first six months of 2026, up 7% year on year, while mass-market beauty sales rose at the same rate to $39.2 billion. Fragrance and skincare emerged as the strongest-performing categories, which revealed that despite consumer confidence uncertainty people are still keen to spend on looking their best.
Is TGT a Good Stock to Buy Now?
On TipRanks, TGT has a Moderate Buy consensus based on 12 Buy, 14 Hold and 2 Sell ratings. Its highest price target is $200. TGT stock's consensus price target is $165.96, implying a 5.81% upside. (See TGT Stock Forecast).