11:52 AM EDT, 08/14/2026 (MT Newswires) -- Walmart ( WMT ) is expected to miss second-quarter comparable sales estimates as high gas prices pressure low-income households, while Target ( TGT ) is seen delivering a beat amid demand strength, Deutsche Bank said in a client note emailed Friday.

Walmart ( WMT ) is scheduled to release its results on Aug. 20, while Target ( TGT ) reports Aug. 19.

The brokerage expects Walmart ( WMT ) to report US comparable store sales growth of 3% to 3.5%, trailing Wall Street's 3.7% consensus.

"Heading into (second quarter) results, expectations are not elevated for the first time in a while, and we see an arguably more balanced set-up than two months ago," Deutsche Bank analyst Krisztina Katai said.

Higher gas prices are impacting lower-income households, while pharmacy-related headwinds have intensified, Katai said. "Pharmacy headwinds will continue through the (second half), and incremental sales upside may be difficult to generate in a cautious and potentially more promotional consumer backdrop," Katai added.

Walmart's ( WMT ) underlying business, however, remains healthy amid signs that grocery-led share gains have accelerated, according to the brokerage.

For Target ( TGT ), Deutsche Bank raised its second-quarter same-store sales view, now expecting 2.9% growth, compared with the Street's 2.3%. It boosted Target's ( TGT ) earnings estimate to $2.51 per share, above consensus of $2.29, citing "broad-based demand strength."

The retailer's "turnaround progress is reflected in the stock," which has rallied nearly 59% this year, Katai said.

"We remain sidelined until there is greater evidence that recent (same-store sales) momentum reflects sustainable market share gains and improved competitive positioning, rather than cycling easier comparisons," Katai wrote.

Deutsche Bank has hold ratings on both retailers, with a $120 price target on Walmart's ( WMT ) stock and a $140 view on Target ( TGT ).

Earlier this week, RBC Capital Markets predicted Walmart ( WMT ) will miss second-quarter consensus expectations for comparable sales and Target ( TGT ) will deliver a beat.

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