Here’s what Wall Street experts are saying about Target ahead of earnings

Target (TGT) is scheduled to report results of its second quarter before the market open on Wednesday, August 20. The company will host earnings conference call at 8am EST. What to watch for:

GUIDANCE: In May, Target backed its fiscal 2025 guidance calling for adjusted earnings per share of $8.80-$9.80 on revenue up 1% and flat comparable sales. Analysts currently expect $7.34 for EPS and $104.69B in revenue for the fiscal year. Jim Lee, chief financial officer, said Target will remain “appropriately cautious with our expectations” for the year ahead.

Truist said the quarter should be solid for most Hardlines/Broadlines Consumer names, even though comparisons are about to become more difficult for most retailers and tariff risk remains.

‘TACTICAL OUTPERFORM’: Evercore ISI added Target to the firm’s “Tactical Outperform” list ahead of the August 20 earnings. With a view that the Street estimates are “reasonable” and that the guidance is unlikely to be reduced, the firm sees potential for a high single digit to low double digit increase around earnings and sees near term upside to $110-$115, says the analyst, who has an In Line rating and $108 price target on Target shares.

UNDERPERFORMING WALMART: Last week, BofA downgraded Target o Underperform from Neutral with a price target of $93, down from $105. Target is now underperforming Walmart (WMT) on a comparable sales compound annual growth rate vs. 2019 and digital trends “look very challenged,” the analyst tells investors. The firm sees increasing longer-term sales and margin risks given slowing digital sales growth, a lack of scale in digital advertising and third-party marketplace, elevated tariff, pricing and merchandising headwinds, and increasing competitive threats from both Walmart and Amazon (AMZN), the analyst added.

In late July, Barclays downgraded Target to Underweight from Equal Weight with an unchanged price target of $91. The firm says that absent a bigger strategic shift, the company’s sales will continue to underperform. Target’s comps have improved in Q2, but have continued to underperform in both consumables and general merchandise, the analyst tells investors in a research note.

AMAZON’S GROCERY EXPANSION: Earlier this month, Amazon announced an expansion of its grocery delivery service. Amazon customers in more than 1,000 cities and towns can now order groceries with same-day delivery, and the company has plans to expand this to over 2,300 cities and town across the U.S. by the end of 2025. For Prime members, same-day delivery is free for orders over $25 in most cities. If an order doesn’t meet the minimum, members can still choose same-day delivery for a $2.99 fee. For customers without a Prime membership, the service is available with a $12.99 fee, regardless of order size.

SENTIMENT: Click here to check out recent Media Buzz Sentiment on Target as measured by TipRanks.