FINWIRES · TerminalLIVE
FINWIRES

Target Likely to Beat Q2 Gross Margin Expectations on Sequential Tailwinds, BofA Says

By

Target (TGT) is likely to post better-than-expected gross margins in Q2 on sequential tailwinds, including lapping a larger merchandise margin headwind and lower tariff pressure, Bank of America Securities said in a Tuesday research report.

The brokerage forecast gross margin expansion of 90 basis points year over year, 20 basis points above consensus and said it increased its second-quarter and fiscal 2027 EPS forecasts by 3% each to $2.36 and $8.84, respectively.

The company is due to report Q2 results on Aug. 19.

Target demonstrated an impressive improvement in sales under new leadership, but concerns around the pace of EPS revisions and the sustainability of strong comp trends remain, analysts wrote.

The brokerage said it reiterated its underperform rating on the stock and raised its price target to $124 per share from $110.

Price: $152.03, Change: $+0.90, Percent Change: +0.60%

Related Articles

Wire

Dateline Resources Says US Court Orders Halt to Operations at California Project in Ongoing Case; Shares Reach One-Year Low

Dateline Resources (ASX:DTR) said the US District Court for the Central District of California issued a preliminary order requiring, among other things, that Dateline and its wholly-owned unit, Colosseum Rare Metals, halt operations at the Colosseum project until either a preliminary injunction is lifted or a final judgment is delivered in relation to the National Parks Conservation Association proceedings, according to a Wednesday Australian bourse filing.The non-governmental organization had brought the proceedings in the court against the US Department of the Interior, the US National Parks Service, and various other parties, per the filing. It sought a preliminary injunction restraining activities at the project pending resolution of its challenge to the 2025 National Parks Service's acknowledgement of the continuing effect of the mine's existing plan of operations.Dateline said it is considering the preliminary order and its alternative courses of action, including a potential appeal to the appellate court.The company's shares fell nearly 38% in recent trading and earlier reached their lowest point in over a year.

ASX:DTR
Wire

Franco-Nevada Q2 Adjusted Earnings, Revenue Rise; Shares Drop After Hours

Franco-Nevada (FNV) reported Q2 non-GAAP net income late Tuesday of $1.81 per diluted share, up from $1.24 a year earlier.Analysts polled by FactSet expected $1.96.Revenue in the three months ended June 30 rose to $580.9 million from $369.4 million a year earlier.Analysts expected $616.7 million.The board maintained a quarterly dividend of $0.44 a share, payable Sept. 24 to stockholders of record Sept. 10.The company's shares fell 2.1% in after-hours trading.

$FNV
Wire

ERock Q2 Revenue Falls; 2026 Guidance Set

ERock (EROC), which completed its initial public offering in June, reported Q2 net loss late Tuesday of $0.06 per diluted share. Comparable year-ago details were not provided.Analysts polled by FactSet expected a loss of $0.24.Revenue for the quarter ended June 30 was $39.9 million, down from $68.5 million a year earlier.Four analysts expected $20.4 million.For 2026, the company expects revenue of $435 million to $465 million. Analysts expect $448.3 million.Also, the company highlighted that it executed a 470 megawatt equipment purchase order from Anthropic, extending its production commitments into 2028.

$EROC