(Updated to include BofA's commentary)

BofA Securities lowered its price target on Target (TGT) to $80 from $93 following the company's Q3 earnings release. While EPS came in ahead of expectations, comparable sales fell short, and the firm expects softness in sales to persist into Q4.

The brokerage raised its 2026 adjusted EPS estimate to $7.25 to reflect the Q3 beat and align with the company's updated guidance of $7-8 (revised down from the prior $7-9 range).

Although sales weakness is expected to continue, the brokerage believes the company's recently announced price reductions-covering 3,000 food, beverage, and essential items-along with merchandising initiatives, including owned brands and partnerships, could bolster the retailer's perception of value and newness over time.

Target has an average rating of hold and mean price target of $96, according to analysts polled by FactSet.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

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