CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
Target Corporation (TGT) delivered strong Q1 FY 27 (Jan.) results with comparable sales growing 5.6% vs. 2.5% consensus, and adjusted EPS of $1.71 beating $1.46 consensus, owing to 4.4% traffic growth and 1.1% basket increase. This marked the first positive traffic in over a year and strongest comp growth in four years. We view the traffic improvement as encouraging validation of TGT's efforts to reestablish merchandising authority after years of underinvestment. Management raised full-year guidance, increasing net sales growth expectations to ~4% (up by 2%-pts) and projecting operating margin expansion of more than 20 bps. Alternative revenue streams grew 24.6%, providing important margin diversification. Gross margin expanded 80 basis points to 29.0% on improved supply chain productivity and lower markdowns. While execution risk remains elevated given the company's ongoing turnaround, we believe the strong Q1 FY 27 performance provides encouraging validation of strategic initiatives under new leadership.