diff --git a/client/src/app/pages/applications/analysis-wizard/set-options.tsx b/client/src/app/pages/applications/analysis-wizard/set-options.tsx
index 8efc561b3..f5597388d 100644
--- a/client/src/app/pages/applications/analysis-wizard/set-options.tsx
+++ b/client/src/app/pages/applications/analysis-wizard/set-options.tsx
@@ -29,6 +29,11 @@ import { DEFAULT_SELECT_MAX_HEIGHT } from "@app/Constants";
 import { useFetchTargets } from "@app/queries/targets";
 import defaultSources from "./sources";
 import { QuestionCircleIcon } from "@patternfly/react-icons";
+import {
+  findLabelBySelector,
+  isLabelInFormLabels,
+  updateSelectedTargetsBasedOnLabels,
+} from "./utils";
 
 export const SetOptions: React.FC = () => {
   const { t } = useTranslation();
@@ -41,6 +46,7 @@ export const SetOptions: React.FC = () => {
     excludedRulesTags,
     autoTaggingEnabled,
     advancedAnalysisEnabled,
+    selectedTargets,
   } = watch();
 
   const [isSelectTargetsOpen, setSelectTargetsOpen] = React.useState(false);
@@ -119,27 +125,33 @@ export const SetOptions: React.FC = () => {
               isOpen={isSelectTargetsOpen}
               onSelect={(_, selection) => {
                 const selectionWithLabelSelector = `konveyor.io/target=${selection}`;
-                const matchingLabel =
-                  defaultTargetsAndTargetsLabels.find(
-                    (label) => label.label === selectionWithLabelSelector
-                  ) || "";
-
-                const formLabelLabels = formLabels.map(
-                  (formLabel) => formLabel.label
+                const matchingLabel = findLabelBySelector(
+                  defaultTargetsAndTargetsLabels,
+                  selectionWithLabelSelector
                 );
+                let updatedFormLabels = [];
                 if (
                   matchingLabel &&
-                  !formLabelLabels.includes(matchingLabel.label)
+                  !isLabelInFormLabels(formLabels, matchingLabel.label)
                 ) {
-                  onChange([...formLabels, matchingLabel]);
+                  updatedFormLabels = [...formLabels, matchingLabel];
+                  onChange(updatedFormLabels);
                 } else {
-                  onChange(
-                    formLabels.filter(
-                      (formLabel) =>
-                        formLabel.label !== selectionWithLabelSelector
-                    )
+                  updatedFormLabels = formLabels.filter(
+                    (formLabel) =>
+                      formLabel.label !== selectionWithLabelSelector
                   );
+                  onChange(updatedFormLabels);
                 }
+
+                const updatedSelectedTargets =
+                  updateSelectedTargetsBasedOnLabels(
+                    updatedFormLabels,
+                    selectedTargets,
+                    targets
+                  );
+                setValue("selectedTargets", updatedSelectedTargets);
+
                 onBlur();
                 setSelectTargetsOpen(!isSelectTargetsOpen);
               }}
diff --git a/client/src/app/pages/applications/analysis-wizard/set-targets.tsx b/client/src/app/pages/applications/analysis-wizard/set-targets.tsx
index 9d0f0577b..d2d191d2d 100644
--- a/client/src/app/pages/applications/analysis-wizard/set-targets.tsx
+++ b/client/src/app/pages/applications/analysis-wizard/set-targets.tsx
@@ -19,6 +19,7 @@ import { useFetchTargets } from "@app/queries/targets";
 import { Application, TagCategory, Target } from "@app/api/models";
 import { useFetchTagCategories } from "@app/queries/tags";
 import { SimpleSelectCheckbox } from "@app/components/SimpleSelectCheckbox";
+import { getUpdatedFormLabels, updateSelectedTargets } from "./utils";
 interface SetTargetsProps {
   applications: Application[];
 }
@@ -101,61 +102,23 @@ export const SetTargets: React.FC<SetTargetsProps> = ({ applications }) => {
     selectedLabelName: string,
     target: Target
   ) => {
-    const updatedSelectedTargets = getUpdatedSelectedTargets(
-      isSelecting,
-      target
+    const updatedSelectedTargets = updateSelectedTargets(
+      target.id,
+      selectedTargets
     );
 
     const updatedFormLabels = getUpdatedFormLabels(
       isSelecting,
       selectedLabelName,
-      target
+      target,
+      formLabels
     );
 
     setValue("formLabels", updatedFormLabels);
     setValue("selectedTargets", updatedSelectedTargets);
   };
 
-  const getUpdatedSelectedTargets = (isSelecting: boolean, target: Target) => {
-    const { selectedTargets } = values;
-    if (isSelecting) {
-      return [...selectedTargets, target.id];
-    }
-    return selectedTargets.filter((id) => id !== target.id);
-  };
-
-  const getUpdatedFormLabels = (
-    isSelecting: boolean,
-    selectedLabelName: string,
-    target: Target
-  ) => {
-    const { formLabels } = values;
-    if (target.custom) {
-      const customTargetLabelNames = target.labels?.map((label) => label.name);
-      const otherSelectedLabels = formLabels?.filter(
-        (formLabel) => !customTargetLabelNames?.includes(formLabel.name)
-      );
-      return isSelecting && target.labels
-        ? [...otherSelectedLabels, ...target.labels]
-        : otherSelectedLabels;
-    } else {
-      const otherSelectedLabels = formLabels?.filter(
-        (formLabel) => formLabel.name !== selectedLabelName
-      );
-      if (isSelecting) {
-        const matchingLabel = target.labels?.find(
-          (label) => label.name === selectedLabelName
-        );
-        return matchingLabel
-          ? [...otherSelectedLabels, matchingLabel]
-          : otherSelectedLabels;
-      }
-      return otherSelectedLabels;
-    }
-  };
-
   const allProviders = targets.flatMap((target) => target.provider);
-
   const languageOptions = Array.from(new Set(allProviders));
 
   return (
diff --git a/client/src/app/pages/applications/analysis-wizard/utils.ts b/client/src/app/pages/applications/analysis-wizard/utils.ts
index 9075478ca..07494fc4c 100644
--- a/client/src/app/pages/applications/analysis-wizard/utils.ts
+++ b/client/src/app/pages/applications/analysis-wizard/utils.ts
@@ -1,5 +1,5 @@
 import * as React from "react";
-import { Application } from "@app/api/models";
+import { Application, Target, TargetLabel } from "@app/api/models";
 import { AnalysisMode, ANALYSIS_MODES } from "./schema";
 
 export const isApplicationBinaryEnabled = (
@@ -60,3 +60,80 @@ export const useAnalyzableApplicationsByMode = (
       ),
     [applications]
   );
+
+export const updateSelectedTargets = (
+  targetId: number,
+  selectedTargetIDs: number[]
+) => {
+  const isSelected = selectedTargetIDs.includes(targetId);
+  return isSelected
+    ? selectedTargetIDs.filter((id) => id !== targetId)
+    : [...selectedTargetIDs, targetId];
+};
+
+export const getUpdatedFormLabels = (
+  isSelecting: boolean,
+  selectedLabelName: string,
+  target: Target,
+  formLabels: TargetLabel[]
+) => {
+  if (target.custom) {
+    const customTargetLabelNames = target.labels?.map((label) => label.name);
+    const otherSelectedLabels = formLabels?.filter(
+      (formLabel) => !customTargetLabelNames?.includes(formLabel.name)
+    );
+    return isSelecting && target.labels
+      ? [...otherSelectedLabels, ...target.labels]
+      : otherSelectedLabels;
+  } else {
+    const otherSelectedLabels = formLabels?.filter(
+      (formLabel) => formLabel.name !== selectedLabelName
+    );
+    if (isSelecting) {
+      const matchingLabel = target.labels?.find(
+        (label) => label.name === selectedLabelName
+      );
+      return matchingLabel
+        ? [...otherSelectedLabels, matchingLabel]
+        : otherSelectedLabels;
+    }
+    return otherSelectedLabels;
+  }
+};
+export const findLabelBySelector = (labels: TargetLabel[], selector: string) =>
+  labels.find((label) => label.label === selector) || "";
+
+export const isLabelInFormLabels = (formLabels: TargetLabel[], label: string) =>
+  formLabels.some((formLabel) => formLabel.label === label);
+
+export const labelToTargetId = (labelName: string, targets: Target[]) => {
+  const target = targets.find(
+    (t) => t.labels?.some((l) => l.name === labelName)
+  );
+  return target ? target.id : null;
+};
+
+export const updateSelectedTargetsBasedOnLabels = (
+  currentFormLabels: TargetLabel[],
+  selectedTargets: number[],
+  targets: Target[]
+) => {
+  const newSelectedTargets = currentFormLabels.reduce(
+    (acc: number[], formLabel) => {
+      const targetId = labelToTargetId(formLabel.name, targets);
+      if (targetId && !acc.includes(targetId)) {
+        acc.push(targetId);
+      }
+      return acc;
+    },
+    []
+  );
+
+  const filteredSelectedTargets = selectedTargets.filter((targetId) =>
+    currentFormLabels.some(
+      (formLabel) => labelToTargetId(formLabel.name, targets) === targetId
+    )
+  );
+
+  return [...new Set([...newSelectedTargets, ...filteredSelectedTargets])];
+};