Target Regains Footing as Consumers Moderate Spending Despite Economic Tailwinds

Telsey believes the consumer is "in a good place" riding economic tailwinds like a strong labor market, moderating inflation, potential for lower interest rates.

Lasser finds consumers "fatigued," spending less steadily and more "episodically" as savings dry up.

Target reported better traffic and margins, showing it's regaining its footing.

Catalysts for Target include upcoming conference, easier comparisons to 2022 issues, potential to retrace to peak margins.

Even aspirational consumers moderating purchases, spending more at outlets, off-price retailers.