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Target's earnings upside underestimated as margin recovery drives profit growth beyond sales gains.

Analyst Insights
15 Apr 2026
Proactive Investors
View Source
Bullish
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Jefferies analysts argue that Target's earnings potential is underestimated because the market focuses too much on sales recovery rather than margin improvements. They forecast Target's earnings per share (EPS) to grow 7.6% in 2026, outpacing sales growth of 2.3%, driven by margin expansion from a better product mix and improved markdown discipline. Operational improvements and fixed cost leverage could further boost profits despite cost pressures. This suggests Target's profit recovery could be faster and stronger than currently expected by investors.

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