11:12 AM EDT, 08/19/2024 (MT Newswires) -- Target ( TGT ) will likely see a return to year-over-year comparable sales growth in fiscal Q2 due to easier comparisons and the company's focus on value offerings, BofA Securities said in an earnings preview on Monday.

Target ( TGT ) is scheduled to report its fiscal Q2 results on Wednesday.

The firm said it expects gross margins to get support from cost savings initiatives, lean inventory levels, favorable product mix and potentially moderating shrinkage issues.

BofA expects Target's ( TGT ) near-term and long-term trends to improve and this outweighs risks related to discretionary spending, competition and slower pace of gross margin recovery.

"Target's ( TGT ) heightened focus on value positions it well for share gains going forward including improving price gaps and several new owned brand launches focused on value and entry-level price points," the firm said.

BofA reiterated its buy rating on Target's ( TGT ) stock, with a price objective of $190.

Shares of the company were up more than 1% in recent trading.

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