Oppenheimer analysts told investors in a note previewing Target 's (NYSE:TGT) upcoming earnings that the firm is positive on the stock.
TGT will report its second quarter results on August 16, and Oppenheimer, who has an Outperform rating and $165 price target on the stock, said it "continues to anticipate a multiyear margin recovery and an earnings reset."
"This is widely anticipated by investors in our conversations; however, the magnitude of an EPS reduction continues to be an area of debate. Based on our work, we are now projecting EPS of $7.00 in FY23, down from $7.90 previously and below guidance of $7.75-8.75."
Oppenheimer now expects an eventual rebound to $10+ in earnings power to take even longer than previously envisioned. However, for longer-term players, the analysts said they would continue to take advantage of dips and a currently depressed valuation.