Target's (TGT) Q2 results should reflect continued traction with its turnaround efforts, with management potentially raising its 2026 guidance again, Oppenheimer said in a Tuesday research note.

The company is scheduled to report its Q2 results on Aug. 19.

Consistent in-store execution and a clear step-up in newness throughout the store, from beauty to food and beverage, are encouraging, according to the note.

While the Street's 2.1% Q2 comparable-sales forecast appears achievable, the brokerage expects a stepdown from Q1 levels as tax stimulus dollars faded and the company faces tougher comparisons.

Target currently expects fiscal 2026 EPS near the high end of its prior $7.50 to $8.50 range. Oppenheimer believes management could raise its full-year guidance again. The brokerage's base case assumes the company will reinvest any tariff refund dollars back into the business, likely through temporary price reductions.

Oppenheimer reiterated its outperform rating on the stock and raised its price target to $170 per share from $140.

Shares of Target were up 1% in Tuesday afternoon trading.

Price: 153.58, Change: +1.55, Percent Change: +1.02