Target Q2 results to offer key test of recovery, says UBS

UBS anticipates Target's Q2 results will provide a crucial indicator of whether the retailer's recent recovery is gaining sustainable momentum, projecting comparable sales growth of 3% or more. The firm also increased its price target for Target to $166 from $144, citing a stronger comparable sales outlook and potential margin improvements from better execution and strategic initiatives. Analysts believe the market may be underestimating the duration of Target's growth opportunities.