Bank of America Lifts Target Q1 EPS to $1.42 and Price Target to $110
Bank of America raised its first-quarter EPS forecast for Target by 6% to $1.42 and projects 2% comparable sales growth, ahead of the May 20 earnings report. The firm warns that the tax refund–driven sales boost will wane in Q2, signaling a tougher retail backdrop.
1. BoA Increases Q1 EPS Forecast
Bank of America boosted its first-quarter earnings-per-share estimate for Target to $1.42, a 6% increase over its prior projection, driven by an anticipated 2% rise in comparable-store sales for the period.
2. Sales Backdrop Darkens in Q2
The firm cautions that the elevated consumer spending fueled by this year’s early tax refunds will taper off in the second quarter, creating headwinds for same-store sales and margin growth.
3. Maintains Underperform Rating, Raises Price Target
Despite lifting its price objective to $110 from $106, Bank of America kept an Underperform rating on Target, citing valuation concerns and the shifting macroeconomic environment as key risks.