Target’s (TGT) top-line trends likely continued to be pressured in fiscal Q4, though the retailer has a “compelling” setup into 2024, UBS Securities said in a note Monday. The brokerage projects Target’s fiscal Q4 earnings at $2.42 per diluted share on revenue of $31.61 billion. The market consensus is for $2.40 and $31.81 billion, respectively, according to UBS. The firm sees the retailer’s fiscal Q4 comparable sales falling 5.5%, compared with the market consensus for a 4.5% drop. “Our baseline thesis on Target is that it will get back to growing both its sales and profits this year, which will propel its stock higher,” UBS analysts Michael Lasser, Zeyn Burak and Mark Carden said in the note. “Its upcoming print should provide evidence that it has the tools to make this happen in the coming quarter.” UBS has a buy rating on the Target stock, with a $174 price target.

Target (NYSE: TGT)  may be on track for a sales rebound in 2024, with several tailwinds returning for the company, according to UBS analysts. They say in a research note that moderating inflation on consumables will give shoppers more cash to spend on discretionary goods, which will benefit Target. The company will also be lapping easier comparisons in 2024, as 2023 saw less promotional activity than 2022 and the company’s sales took a hit in May and June from backlash to its Pride Month collection. Cost cuts and smaller losses from shrink will likely boost profit as well. The analysts back their buy rating and price target of $174. Shares rise 2% to $149.48.