Target Analysts Slash Their Forecasts After Q2 Results

Target Corporation TGT reported better-than-expected second-quarter earnings, but lowered its profit forecast.

Target reported a second-quarter FY23 sales decline of 4.9% year-on-year to $24.77 billion, missing the analyst consensus of $25.18 billion. Adjusted EPS of $1.80 beat the analyst consensus of $1.39.

Target lowered FY23 adjusted EPS guidance from $7.75-$8.75 to $7.00-$8.00 (consensus $7.79) and expects comparable sales in a wide range around mid-single-digit decline for the remainder of the year. It sees third-quarter adjusted EPS of $1.20 - $1.60 against the Street view of $1.84; expects a mid-single-digit decline in comparable sales.

Target shares gained 3% to close at $128.75 on Wednesday and added 0.2% in today’s pre-market trading session.

These analysts made changes to their price targets on Target following earnings announcement.

• Goldman Sachs cut the price target on Target from $185 to $168. Goldman Sachs analyst Kate McShane maintained a Buy rating.
• B of A Securities slashed the price target on Target from $145 to $135. B of A Securities analyst Robert Ohmes maintained a Neutral rating.
• BMO Capital lowered the price target on Target from $140 to $130. BMO Capital analyst Kelly Bania maintained a Market Perform rating.

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