Bank of America Securities analyst Christopher Nardone reiterated an Underperform rating on Target while raising the price forecast to $124 from $110. The new forecast remains about 19% below the stock’s $152.29 price as of Aug. 12.
The analyst also raised earnings estimates after stronger consumer trends and improving sales under Target’s new leadership. However, Nardone remains wary about the pace of earnings revisions and whether recent comparable-sales momentum can last.
Stronger Sales Lift Target Estimates
Bank of America increased its fiscal 2027 earnings estimate to $8.46 per share from $8.20. It raised its fiscal 2028 estimate to $8.84 from $8.53 and its fiscal 2029 estimate to $9.36 from $9.05. The firm also lifted its revenue forecasts for each of those years.
For the second quarter, Bank of America expects adjusted earnings of $2.34 per share, compared with the Visible Alpha consensus of $2.30. It forecasts net sales of $26.10 billion, roughly in line with consensus, and comparable sales growth of 2.5%, slightly above the 2.3% consensus estimate.
