Target price target lowered to $165 from $190 at Baird

Baird lowered the firm’s price target on Target to $165 from $190 and keeps an Outperform rating on the shares post the Q2 report. The stronger profit performance offsets the sales shortfall, the analyst tells investors in a research note. The firm says Target’s ability to deliver 25% earnings upside despite softer than expected sales provides “some comfort” with its longer-term margin recapture opportunity. Management took an appropriately cautious stance on the second half of 2023 guidance, and should be able to execute against these re-based numbers, contends Baird.