Bank of America reiterates caution on TGT stock due to decelerating sales trends and macroeconomic pressures before May 20 results.
Bank of America analyst Christopher Nardone reaffirmed an Underperform rating on Target (TGT) ahead of its May 20 earnings report. Shares dipped 1% in afternoon trading following the note, which cited decelerating sales trends post-Q1 and fading tax refund tailwinds as key risks.
Target’s full-year 2025 net sales declined 1.7% to $104.8 billion from $106.6 billion in 2024, with profitability declines more pronounced. Comparable sales fell 2.5% in the latest quarter, contrasting with Walmart’s 4.6% gain, as traffic dropped for the fourth straight period.
Nardone expects a balanced outlook from Target if gas prices remain elevated, balancing macro caution with merchandising optimism.