This is a relatively new rule. Schools can appeal through the conference to the coordinator of officials if a targeting occurs in the second half. If it had happened in the first half, it wouldn't have been appealable at all.
Essentially, this is a way to appeal a suspension from the next game.
Put a different way, the play happened. The refs on the field called and affirmed targeting. So, for all intents and purposes, there was targeting.
UTC appealed the disqualification. The NCAA coordinator of officials, in his final opinion, found there not to be targeting. This process is less about the individual play and more about the eligibility of the player.
So, on the one hand, it is targeting. That was the affirmed call.
On the other hand, someone given final authority by the NCAA decided it wasn't targeting.