Target (TGT) Q1 results are likely to miss consensus estimates amid top-line headwinds and expense pressures, Oppenheimer said in a Wednesday research report.
The brokerage lowered its 2025 projections to reflect near-term challenges in H1 and models muted H2 gross margins due to "category/tariff pressures," according to the report.
Analysts noted they expect Q1 EPS of $1.14 from $1.37 earlier, based on a comp drop of 4% from 2% due to headwinds related to softer discretionary spending and boycotts. The company could update its 2025 EPS outlook to $7.00 from $8.80 to $9.80, previously, they added.
"We still believe normalized earnings for the model is $9.00+ vs. our new $8.00 FY26 estimate and prior peak earnings delivery of $13.56," the brokerage said.
Despite roadblocks to top-line, the brokerage said it has observed some of the "best store conditions" with marginal apparel clearance inventory.
Oppenheimer said it retained its outperform rating on the stock and lowered its price target to $130 per share from $150 earlier.
Price: 96.92, Change: -1.05, Percent Change: -1.08
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