• Target plans to release its first-quarter earnings next week and may be weaker than expected, Oppenheimer analysts wrote in a research note on Wednesday.

• The company's analysts have lowered their target share for the fifth time since last March.

• However, Oppenheimer remains bullish on Target's long-term outlook and believes the current share price decline may be a good buying opportunity.

Everyone's eyes were staring at Walmart (WMT) This week's income, but Target (TGT) The figure (arranged next Wednesday morning) will also be closely watched by retail analysts, with some saying its stock could be tough.

Oppenheimer trimmed the target price but retained the target stock's "outperform" rating. The retailer's near-term prospects seem challenging, according to the notes.

Oppenheimer expects targets to report a year-on-year decline in comparable sales in the first quarter, with earnings per share of $1.14 (EPS), part of the average consensus estimate of analysts focusing on the company and being voted by visible Alpha.

Oppenheimer said profits may be under pressure as consumers retreat in discretionary products, such as beauty products, and some resist abandoning chains of some of their diversity, equity and inclusion programs. Its research team said Target could update and reduce its full-year outlook, forecasting earnings per share of $7 in 2025, rather than the previous $8.80 to $9.80.

The fifth time since March 2024 has lowered its target price, issuing a $130 target for retailers. That's about 5.5% higher than the consensus target price of the visible Alpha and 36% higher than the $95.11 traded on Wednesday afternoon. They have recently fallen almost 3% and have fallen almost 30% this year.

Still, Oppenheimer remains optimistic about Target's long-term outlook.

"We believe the company has sold well in digital efforts, store investments, success on the exclusive brand front, competitor clearing over time, and partnerships with other brands/retailers," the company's notes said.

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