10:36 AM EDT, 08/15/2025 (MT Newswires) -- Target ( TGT ) will likely post Q2 comparable sales modestly above market expectations, but

also a profit decline amid a "softer top-line, tariff pressures, and other costs to adjust inventory levels," Oppenheimer said in a note Friday.

The investment firm expects Target ( TGT ) to see a 2.5% Q2 comp fall compared with Wall Street estimates for a 3.2% drop.

Data points indicate a "sequentially improved discretionary backdrop with stronger trends in beauty and consumer confidence moving higher," Oppenheimer said.

The brokerage said it saw "very solid store conditions and limited apparel clearance inventory" during a round of Target ( TGT ) store checks in Northern New Jersey.

Oppenheimer expects Target ( TGT ) to reaffirm its full-year outlook despite the tariff issues.

Oppenheimer has an outperform rating on Target ( TGT ) and $130 price target.

Target ( TGT ) is schedule to release Q2 results on Aug. 20.

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