Target (TGT) is likely to report a “mid-single-digit comp decline,” in its upcoming Q4 results, Oppenheimer said in a note in a note to clients Monday.
However, EPS is now projected above the midpoint of Q4 guidance, the note said. Target is expected to report earnings this week.
For 2024, Oppenheimer says management may introduce conservative guidance bracketing its $8.75 EPS estimate. Additionally, there is a possibility that the management might provide updates on “intermediate-term operating margin targets.” “We continue to see a path to a nearly 6% operating margin and $10+ in earnings by FY25,” Oppenheimer said.
“Following a more than 40% rally off the October lows, we would be positioned to take advantage of any weakness with a likely conservative guide,” it added.
Oppenheimer raised Target’s price target to $170 from $160 while keeping its outperform rating, citing the company as a top pick.