Target Corporation’s second-quarter earnings showed EPS significantly exceeding expectations, sending the share price higher, while revenue and earnings forecasts for next year were also raised. Analysts’ price targets have risen as well.
Target Corporation reported its second-quarter results, and its share price is said to have risen 7.1% after the earnings release, closing at $165. Revenue was $27 billion, broadly in line with analysts’ expectations, while statutory earnings per share (EPS) came to $4.11, 79% above expectations.
Based on the latest results, revenue for 2027 is forecast at $109.9 billion, with EPS at $9.93, compared with the previous forecasts of $109 billion in revenue and EPS of $8.36. Although the revenue forecast has changed little, reports say the EPS forecast has been raised significantly.
The consensus price target has risen to $162, and the range of underlying forecasts is also being analysed. The most bullish analyst has a target of $200, while the most bearish has a target of $121. It is also said that the growth outlook remains below the industry average.
For investors, the upward revision to EPS is said to suggest an improvement in market sentiment, while some views hold that revenue growth will remain below the industry average. Although next year’s earnings forecasts and higher price targets are attracting attention, some observers also point to the importance of a long-term growth trajectory.