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Goldman Sachs Downgrades Target to Sell

Goldman Sachs downgraded Target (NYSE: TGT) from Neutral to Sell with a price target of $67.00 (from $77.00).

Analyst Matthew Fassler comments “We downgrade TGT to Sell from Neutral. Our $67, 12-month price target implies 0% upside vs. 10% average upside for our coverage universe. We expect stagnant to lower earnings to lead to subdued valuation on a sustained basis. We are concerned that TGT’s exposure to online competition based on its category mix, customer demographics and market mix will necessitate ongoing investment in price and operating costs. While the company’s preannouncement of lower 4Q earnings likely deprives the call of a near-term catalyst, it highlights the company’s long-run challenges. TGT has booked less long-run margin erosion than peers and we believe it generated an EBIT decline in 2016 despite harvesting significant expense reductions.”

For an analyst ratings summary and ratings history on Target click here. For more ratings news on Target click here.

Shares of Target closed at $66.85 yesterday.

From Street Insider

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