Target make the office of an anchor point but keep the object orientation consistent.
If you want to make an object rotate around something, this placement is the right one. In order to do so you could also put the object inside of a 3D group (select the object(s) and press Ctrl+Shift+G).
Here is an example of an object with this kind of placement:
Target (3D Position) : Target of the target orientation distance
Orientation (Euler Angles) : Orientation of the target orientation distance