11:37 AM EST, 11/18/2024 (MT Newswires) -- Target's ( TGT ) fiscal Q3 comp and earnings are likely to hit the low end of management's guidance range even as headwinds in beauty and some hardline categories persist, Oppenheimer said in an earnings preview Monday.

"We continue to feel comfortable with our flat Q3 comp forecast and EPS of $2.10, which are below Street figures of 1.5% and $2.30, respectively," the firm said ahead of the company's October quarter report to be released on Wednesday.

Oppenheimer has turned cautious on its near-term outlook, saying higher interest rates could further hinder a recovery in some of the retailer's categories including home. The firm lowered its Q4 comp forecast to 0% from 1% previously and estimated fiscal 2024 EPS at $9, which is at the low end of the company's $9 to $9.70 guidance range.

Oppenheimer's long-term bull case for Target ( TGT ) is intact, however, saying the company is "well positioned to capture share driven by digital efforts, store investments, merchandising success on the exclusive brand front, competitor liquidations over time, and partnerships with other brands/retailers."

Oppenheimer has an outperform rating on the stock and $185 price target.

Target ( TGT ) shares were 2.5% higher in recent trading.

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