Citi analysts, led by Paul Lejuez, downgraded Target’s stock (NYSE:TGT) from Buy to Neutral due to diminishing store traffic and fierce competition, specifically from technologically-advanced Walmart (NYSE:WMT). They adjusted their price target from $177 to $130, causing a drop in early trading. The analysts predict that 2023 will see further sales decreases, resulting from the plateauing of sales growth witnessed from 2020-2022.
Similarly, J.P. Morgan’s Christopher Horvers had downgraded the stock earlier this month due to Target’s heavy reliance on discretionary sales and its millennial customer base, who are bracing for the resumption of student loan payments. Additionally, the company is grappling with recent controversies over its LGBTQ merchandise and a projected decline in current quarter sales. These factors, combined with growing competition, have left Target in a tough position.
Overall, analysts have a Moderate Buy consensus rating on TGT stock based on 13 Buys, 10 Holds, and zero Sells assigned in the past three months, as indicated by the graphic above. In addition, the average price target of $180.32 per share implies 39.17% upside potential.