Target's merchandising reset boosts shopper traffic, prompting Jefferies to raise Q2 sales and EPS forecasts.

Target Corp's broad merchandising overhaul, including expanded wellness, beauty, home decor, and food sections, is driving increased shopper traffic. Jefferies raised its Q2 comparable sales estimate to 1.6% and EPS forecast to $2.18, citing early signs of success from the reset. Despite tougher year-over-year comparisons due to last year's Nintendo Switch 2 launch, ongoing product launches and exclusive partnerships support continued growth. Jefferies views Target as a top 2026 investment idea, with shares up 41% year-to-date.