Telsey Advisory Group expert Joseph Feldman restated the Outperform score on Target Corporation TGT, reducing the rate projection from $145 to $130.
Target will report its first-quarter revenues on Wednesday, May 21. Expert Feldman decreased first-quarter and full-year 2025 price quotes for Target, pointing out weaker customer costs, especially in discretionary and basic product, in addition to increasing expenses connected to promos, labor, tech financial investments, and possible tariff effects.
While Placer.ai information revealed decreasing traffic early in the quarter with some healing later on, likely from Easter timing and enhanced weather condition, Feldman kept in mind that Target’s efforts in worth offerings, commitment programs, personal label growth, shop upgrades, and brand name collaborations ( Apple Inc. AAPL, Walt Disney Business DIS, Levi Strauss & & Co LEVI, Ulta Charm, Inc. ULTA) might partly balance out pressure.
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Feldman now forecasts overall sales to fall 0.9% to $24.3 billion, with similar sales to decrease 1.5%, below the previous projection of 1.0% and listed below the FactSet agreement of a 1.2% drop.
Feldman kept in mind that Target sources approximately 50% of its expense of items offered from within the U.S., while lowering its dependence on China from about 60% in 2017 to about 30% in 2024, with strategies to bring that listed below 25% by 2026. Although the business hasn’t measured the tariff effect, it prepares to alleviate threats through sourcing diversity, supplier settlements, and rate boosts while protecting balance sheet versatility.
Showing softer customer need, a weaker item mix, and included expense pressures, particularly tariffs, Feldman decreased his 2025 EPS approximate to $8.80 from $9.30 (vs. FactSet’s $8.62) and 2026 EPS to $9.55 from $10.14 (vs. FactSet’s $9.20).
Rate Action: TGT shares are trading greater by 1.68% to $98.62 at last examine Friday.
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