Target (TGT) is expected to report a better-than-expected Q2 results, but the focus will be on its future, UBS Securities said in a note Wednesday. Its Q2 results are due Aug. 20.

"Target will likely post a very good 2Q print and raise the low-end of its outlook," the report said, pointing to sequential comp improvement, price rises, and temporary tailwinds.

Still, UBS analysts said the fundamentals may take a back seat as sentiment on the stock is unlikely to improve until there is more information on its future, starting with a succession plan.

"The market is defaulting to the view that there needs to be a catalyst for change and period of investment to realize the company's potential," they said.

UBS kept its buy rating and $135 price target.

Shares of the company were up about 3% in recent trading.

Price: 105.58, Change: +3.15, Percent Change: +3.08