Retailer Target (NYSE: TGT) continued to be on a losing streak in morning trading at the time of publishing on Thursday after top-rated JP Morgan analyst Christopher Horvers downgraded the stock to a Hold from a Buy. This was the stock’s ninth straight decline, and according to Dow Jones data, its longest losing streak since an 11-day stretch that ended on February 24, 2000. Currently, the retailer’s shares are hovering near a 52-week low of $126.75.
Horvers commented, “We continue to believe that the consumer is broadly weakening while the share of wallet shifts away from goods (51% of [Target’s] sales) is ongoing.” The analyst added that while he remained positive about the stock on a three-year basis, “[Target] has been giving back shares on a [one-year] view and we believe this share loss could accelerate into back to school and linger into holiday given consumer pressures and recent company controversies. This could turn [Target’s] traffic negative after an impressive run of 12 consecutive positive quarters.”
Horvers has a price target of $144 on the stock implying an upside potential of 12.1% at current levels.
This downgrade comes even after delivering better-than-expected earnings in Q1. But the company is facing a tremendous backlash against its pride collection.
Besides Horvers, other analysts are cautiously optimistic about TGT stock with a Moderate Buy consensus rating based on 15 Buys and 10 Holds.
