Target’s (TGT) discretionary offerings could take a hit from recent headwinds, impacting its Q1 financial results, Oppenheimer said in a note Wednesday.
The retailer is scheduled to report Q1 results on May 22. Oppenheimer said it is now “more conservatively” expecting a drop of 4% to 5% in comparable store sales, compared with market expectations for a 3.6% decline.
“Our 12-18 month views on TGT shares remain intact driven by our continued confidence in management’s ability to drive further margin expansion and a return to sustained positive comp growth,” Oppenheimer analysts, including Rupesh Parikh, said in the note.
Oppenheimer has an outperform rating on the Target stock, with a $200 price target.