01:09 PM EDT, 05/23/2024 (MT Newswires) -- Target ( TGT ) is expected to have lower comparable sales in Q2, but are still expected to rise, BofA Securities said in a note Thursday.

Target ( TGT ) is expected to have lower Q2 comparable sales, making the brokerage lower its Q2 sales projection to a 1% increase compared to previous estimate of 3% increase. This is due to "continued softness in discretionary categories (most notably home & hardlines), and softening trends in frequency categories."

However, that means Target ( TGT ) is expected to deliver sales results within its guidance of flat to 2% increase.

The company recently announced a new pricing strategy with rewards programs and owned products focused on entry-level price points that will help in increase traffic and market share.

BofA's forecast for fiscal year 2025 EPS is unchanged at $9.45 given Q1 performance that surpassed its estimates..

BofA reiterated a price objective of $190 for Target ( TGT ) with buy rating.

Price: 144.25, Change: +0.98, Percent Change: +0.68