Deutsche downgrades Target to Hold on market share deterioration

Deutsche Bank downgraded Target (TGT) to Hold from Buy with a price target of $108, down from $184. The company’s Q3 report this morning indicate a “significant deterioration” in market share, primarily to Walmart (WMT) and Amazon (AMZN), the analyst tells investors in a research note. The firm says this, coupled with the necessary investments in infrastructure and supply chain modernization to remain competitive, suggests a longer time-line to recovery than initially projected for Target. Deutsche believes regaining lost market share will likely require substantial price investments and stepped up promotions, pressuring margins and profitability. As such, even with today’s selloff, it finds Target’s risk/reward as balanced.