Target (TGT) is expected to have lower comparable sales in Q2, but are still expected to rise, BofA Securities said in a note Thursday.
Target is expected to have lower Q2 comparable sales, making the brokerage lower its Q2 sales projection to a 1% increase compared to previous estimate of 3% increase. This is due to “continued softness in discretionary categories (most notably home & hardlines), and softening trends in frequency categories.”
However, that means Target is expected to deliver sales results within its guidance of flat to 2% increase.
The company recently announced a new pricing strategy with rewards programs and owned products focused on entry-level price points that will help in increase traffic and market share.
BofA’s forecast for fiscal year 2025 EPS is unchanged at $9.45 given Q1 performance that surpassed its estimates..
BofA reiterated a price objective of $190 for Target with buy rating.