From Yahoo Finance: 2025-05-14 14:06:00

Target’s first-quarter earnings set for next week may be weaker than expected, with a 4% year-over-year drop in comparable sales and an expected $1.14 earnings per share, according to Oppenheimer analysts. The firm lowered its price target for Target shares, but remains optimistic about the retailer’s long-term prospects.

Oppenheimer expects Target to face profit pressure due to decreased consumer spending on discretionary items and backlash over diversity initiatives. The retailer may update and lower its full-year outlook, projecting $7 EPS for 2025. Despite a recent decline in stock prices, Oppenheimer is bullish on Target’s future growth potential.

Despite lowering its target price for Target shares, Oppenheimer maintains an “outperform” rating and believes the retailer is well-positioned for growth. The firm cites digital efforts, store investments, exclusive brand success, competitor liquidations, and partnerships as factors that could drive market share. Target’s stock may face challenges in the short term but presents a buying opportunity for investors.

Read more: Target Stock Will Likely Be Squeezed in 2025, Oppenheimer Says